The GBP/JPY has reversed longterm trend to the upside, now we have wave A of daily degree developing - colored royal blue in the chart. Within this wave there's a set of A-B-C subwaves (colored yellow) with subwave C still developing. The targets of the upmove are Fibonacci retracements of 137.75-122.49, and expansions off 122.49-127.60-126.02.
Resistances:
- 131.92 = .618 retracement, achieved already (!)
- 134.29 = expanded objective point (XOP)
If the price reverses down for a potential corrective wave the immediate supports will be Fibonacci retracements of 122.49-132.55.
Supports:
- 128.71 = .382 retracement
- 127.52 = .50 ret
- 126.33 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to look for longs when the Detrended Oscillator gets below the zero level (35-45 pips), or into the oversold area (145-185) pips below the current price.
Read more on how to apply Fibonacci studies to calculate price targets.
