GBP/JPY is developing daily wave C - colored royal blue in the chart. On smaller timeframes this wave C consists of subwaves A-B-C, they are colored red in the chart. Subwave C is still developing.
The targets of the upmove are Fibonacci expansions off 126.43-131.99-129.82 (daily waves A-B), 129.82-133.22-130.96 (subwaves A-B within C), and 130.96-133.78-132.88.
Resistances:
- 134.36 = objective point (OP)
- 134.62 = contracted objective point (COP)
If the price keeps going down the nearest supports will be Fibonacci retracements of 130.96-133.78, 129.82-133.78, and expansions off 133.78-132.88-133.59.
Supports:
- 133.03 = COP
- 132.70-69 = confluence area of .382 retracement and OP
- 132.37-27 = confluence area of .50 and .382 retracements
- 132.13-04 = confluence area of expanded objective point (XOP) and .618 ret
- 131.80 = .50 ret
- 131.33-23 = confluence area of .618 ret and super expanded objective point (SXOP)
Overbought/Oversold
The Detrended Oscillator is consolidating around the zero level indicating flat market. Assuming that the prevailing trend is up a Fib support (see above) or oversold condition (20 pips to go) can be used to fine-tune long entries.
Read more on how to apply Fibonacci studies to calculate price targets.
