GBP/JPY is developing potential impulse subwave C (colored red in the chart) within impulse wave C of medium term downtrend (colored magenta in the chart). To confirm subwave C break below 132.90 is needed. The immediate supports now are Fibonacci retracements of 132.90-135.73, 122.49-139.93, and expansions off 139.93-135.19-136.96, 136.96-132.90-135.73, 135.73-134.66-135.48.
Supports:
- 134.41-31 = confluence area of objective point (OP) and .50 retracement
- 134.03-133.98 = confluence area of contracted objective point (COP) and .618 ret
- 133.75 = expanded objective point (XOP)
- 133.22 = COP
- 132.68 = super expanded objective point (SXOP)
- 132.22 = OP
- etc.
If the price reverses up and goes above 135.73 the immediate resistances will be Fibonacci retracements of 139.93-132.90, and expansions off 132.90-135.73-134.66.
Resistances:
- 136.41-42 = confluence area of COP and .50 ret
- 137.24 = .618 ret
- 137.49 = OP
Overbought/Oversold
Assuming that the wave of a larger degree is moving down it's preferable to open short positions when the Detrended Oscillator gets above the zero level (5-10 pips above the current prices) or into the overbought area (40-55 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
