GBP/JPY Elliott wave count and Fibonacci levels for July 6, 2011

GBP/JPY is developing corrective subwave B from 128.19 (colored royal blue in the chart) that is part of impulse wave C of long term downtrend (from 132.30) - this one is light green in the chart. Now within this wave B there are A, B and C subwaves of still smaller degree - colored magenta in the chart. Wave C stopped at 130.82, and now we have potential subwave A in to the downtrend. The targets of the downmove are Fibonacci retracements of 128.40-130.82, and expansions off 139.93-130.26-135.11, 135.11-129.74-132.30, 132.30-128.19-130.82.
Supports:
- 129.61 = .50 retracement
- 129.32 = .618 ret
- 128.28 = contracted objective point (COP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 135.11-128.19 and expansions off 128.19-130.06-128.40.
Resistances:
- 130.83 = .382 ret
- 131.43 = expanded objective point (XOP

Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (10-15 pips above the current prices) or into the overbought area (45-60 pips above the current prices).
http://instaforex.com/forex_analysis/32712/?x=OUE