The GBP/JPY is now moving within corrective subwave B (colored magenta in the chart) of daily impulse wave C - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 128.29-131.40, 129.59-131.40.
Supports:
- 130.50 = .50 retracement
- 130.28-21 = confluence area of .618 and .382 retracements
- 129.85 = .50 ret
- 129.48 = .618 ret
If the price breaks above 131.40 the nearest resistances will be Fibonacci expansions off 125.47-129.41-128.29, 128.29.
Resistances:
- 132.45 = objective point (OP)
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to take oversold readings of the Detrended Oscillator to consider long positions. The oscillator is now below the zero level and in the oversold area, therefore now is the time to seek for bottoming signals and enter long when it comes. Levels to watch - 130.71, 130.50.
Read more on how to apply Fibonacci studies to calculate price targets.
