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GBP/JPY Elliott wave count and Fibonacci levels for June 15, 2012

Posted at June 15, 2012 Categories : Forex Analysis |

GBP/JPY is developing impulse wave C of medium term downtrend from 129.32 (light green in the chart). Within this wave we have three subwaves (royal blue in the chart), and potential impulse subwave C is moving from 124.28. Within this wave we also have three subwaves (magenta in the chart), and potential impulse subwave C is developing from 124.21.

The supports below are Fibonacci retracements of 118.74-124.28, and expansions off 124.28-121.85-124.21, 124.21-122.70-123.55.

Supports:

– 122.16 = .382 retracement
– 122.04 = objective point (OP)
– 121.78 = OP
– 121.51 = .50 retracement
– 121.11 = expanded objective point (XOP)
– 120.86 = .618 ret

However if the price reverses to the upside the immediate resistances will be Fibonacci retracements of 129.33-118.74, and expansions off 118.74-124.28-121.85.

– 125.27-28-35 = confluence area of COP, .618 ret, and OP

Overbought/Oversold

The bigger wave is now moving down, so it’s preferable to try short positions when the Detrended Oscillator goes above the zero level (25-30 pips above the current prices) or into the overbought area (60-75 pips above the current prices). Watch for opportunities to go short at or near the indicated supports.

Read more on how to trade with Fibonacci levels.

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