GBP/JPY Elliott wave count and Fibonacci levels for September 26, 2011

Wave analysis

Roman Molodiashin

GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are five subwaves (colored royal blue in the chart) with impulse subwave 5 still developing from 124.36. Within wave 5 there are also four waves of still smaller degree (colored magenta in the chart), with subwave 4 still developing from 116.78.
The targets of the downmove are Fibonacci expansions off 130.81-123.27-127.31, 126.55-123.04-124.36, 124.36-120.61-122.22, 122.22-116.78-118.84.
Supports:
- 116.15 = expanded objective point (XOP)
- 115.48 = contracted objective point (COP)
- 115.17-11 = confluence area of super expanded objective point (SXOP) and XOP
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 122.22-116.78.
Resistances:
- 118.86 = .382 retracement
- 119.50 = .50 ret
- 120.14 = .618 ret
 Overbought/Oversold
Assuming that the major wave is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (15-20 pips above the current prices) or into the overbought area (40-50 pips above the current prices).
http://instaforex.com/forex_analysis/39614/?x=OUE