Wave count shows that GBP/JPY is developing a corrective daily wave to 130.80-137.75. The correction might be over since major targets have been reached:
- 133.45 = .618 retracement
- 133.26 = expanded objective point (XOP), which is a Fibonacci expansion off 137.75-135.46-136.97
On smaller timeframes the price is moving up within corrective wave B (colored red) within impulse C (colored magenta). However this B may become a new A within a larger impulse up. The targets above the current level are Fibonacci retracements of 136.97-132.78? 137.75-132.78, and expansions off 132.78-134.67-132.97.
130.80 is broken, this wave will remain corrective. The targets of this wave are Fibonacci retracements of 130.80-137.75, and expansions off 137.75-135.46-136.97, 136.97-135.02-135.72:
- 134.68 = .382 retracement
- 134.86-88 = confluence area of objective point (OP) and .50 ret
- 135.26-37 = confluence area of .50 and .618
- 135.88-136.03 = confluence area of .618 and expanded objective point (XOP)
Still below there's one more target which is valid in case the price turns south:
- 132.44 = .764
Overbought/Oversold
The Detrended Oscillator is slightly above the zero level. The nearest oversold area according to this indicator is 80 pips below. Assuming that the major trend is up and reversal that may be happening now, it's good to look for bottoming signals some 70-80 pips below to enter long.
