GBP/JPY broke above 133.78 and confirmed wave C of the medium term uptrend. This wave C (colored magenta in the chart) now consists of A-B-C subwaves with subwave C developing - colored orange red in the chart. The targets of the upmove are Fibonacci expansions off 126.43-131.99-129.82 (daily waves A-B, colored royal blue in the chart), 129.82-133.78-132.17 (med term waves), 132.17-132.96-132.20 (subwaves within C).
Resistances:
- 134.27 = super expanded objective point (SXOP)
- 134.62 = contracted objective point (COP)
- 135.38 = objective point (OP)
If the price keeps moving down, potentially in corrective subwave 4 (colored yellow in the chart), the nearest supports will be Fibonacci retracements of 132.17-134.19.
Supports:
- 133.42 = .382 retracement
- 133.18 = .50 ret
- 132.94 = .618 ret
Overbought/Oversold
The Detrended Oscillator is gradually moving into the oversold area, which is a confirmation of a corrective wave. Assuming that the prevailing trend is still up the oversold area (15-20 pips to go) combined with a Fib support may provide a good long entry point at 133.42 (.382 ret) or 133.18 (.50 ret).
Read more on how to apply Fibonacci studies to calculate price targets.
