GBP/JPY has developed wave C (or 3) of daily degree 129.82-134.19, now corrective wave 4 is developing. At the moment the corrective wave has 3 subwaves - A-B-C (colored red in the chart). The targets of the corrective downmove are Fibonacci retracements of 129.82-134.19, and expansions off 134.19-133.02-134.14.
Supports:
- 133.52 = .328 retracement
- 132.28 = expanded objective point (XOP)
- 132.01 = .50 ret
- 131.49 = .618 ret
- 131.11 = super expanded objective point (SXOP)
If the price keeps moving up the nearest resistances will be Fibonacci retracements of 134.17-132.61.
Resistances:
- 133.39 = .50 ret
- 133.57 = .618 ret
Overbought/Oversold
The Detrended Oscillator is making equal peaks around the zero level, which confirms consolidation. Assuming that the longer term trend is up it's preferable to stand aside to wait until wave 5 manifests itself.
Read more on how to apply Fibonacci studies to calculate price targets.
