GBP/JPY is moving in daily wave C (colored royal blue in the chart), which in its turn consists of smaller scale waves A and B, with wave B developing (colored magenta in the chart). The targets of the corrective downmove are Fibonacci retracements of 129.82-133.78, 130.96-133.78, and expansions off 133.78-132.88-133.75.
Supports:
- 132.29-27 = confluence area of expanded objective point (XOP) and .382 retracement
- 132.04 = .618 ret
- 131.80 = .50 ret
- 131.39-33 = confluence area of super expanded objective point (SXOP) and .618 ret
If the price resumes the uptrend the nearest significant resistances will be Fibonacci expansions off 126.43-131.99-129.82 (daily waves A-B), 129.82-133.78-132.17.
Resistances:
- 134.62 = contracted objective point (COP)
- 135.38 = objective point (OP)
Overbought/Oversold
The Detrended Oscillator is consolidating around the zero level confirming the flat. Assuming that the prevailing trend is up the best opportunity to go long the oscillator can provide is by getting into the oversold or at least below the zero level (30-40 pips to go). The trade can be fine tuned using Fibonacci supports - see above.
Read more on how to apply Fibonacci studies to calculate price targets.
