GBP/JPY is moving within wave C of medium term uptrend - colored magenta in the chart. However on smaller timeframes this wave consists of waves A and B, B is still developing - colored red in the chart. The targets of the midterm trend 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 (midterm waves), 132.17-134.19-133.02 (subwaves within C).
Resistances:
- 134.27 = contracted objective point (COP)
- 134.62 = COP
- 135.04 = objective point (OP)
- 135.38 = РћР
In case the correction continues the nearest supports will be Fibonacci retracements of 132.17-134.19 and 129.82-134.19.
Supports:
- 132.94 = .618 retracement
- 132.52 = .382 ret
- 132.01 = .50 ret
- 131.49 = .618 ret
Overbought/Oversold
The Detrended Oscillator has made 2 lower peaks below the zero level, indicating a corrective wave. To continue trading in the direction of the midterm trend the oscillator should show a higher high above the zero level. A deeper retracement to a Fib support at 132.94 can not be ruled out. In case a bottoming signal appears at this level it can be used for a long position.
Read more on how to apply Fibonacci studies to calculate price targets.
