The GBP/JPY is developing subwave C (colored magenta in the chart) of daily impulse wave C - colored royal blue in the chart. The targets of the upmove are Fibonacci expansions off 125.47-129.41-128.29, 128.29-131.40-130.43.
Resistances:
- 132.23 = objective point (OP)
- 132.35 = contracted objective point (COP)
If the price reverses down the nearest supports will be Fibonacci retracements of 130.43-131.82, 128.29-131.82.
Supports:
- 131.13 = .50 retracement
- 130.96 = .618 ret
- 130.47 = .382 ret
- 130.06 = .50 ret
- 129.64 = .618 ret
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 moving up from below the zero level and from .382 retracement 131.29. Therefore it's better to wait until the price retraces at least to 131.29 support to open long positions.
Read more on how to apply Fibonacci studies to calculate price targets.
