GBP/JPY is developing wave C of medium term downtrend from 128.87 (colored red in the chart). Within this wave there are four subwaves with subwave 4 from 123.27 still developing (colored orange red in the chart). The targets of the upmove are Fibonacci retracements of 130.81-123.23, 128.87-123.27.
Resistances:
- 125.41 = .382 retracement
- 126.07-15 = .50 and .382 retracements
- 126.73 = .618 ret
- 127.04 = .50 ret
- 127.93 = .618 ret
If the price reverses to the downside the targets of the downmove will be Fibonacci expansions off 130.81-127.38-128.87, 128.87-125-36-127.01.
Supports:
- 121.33 = expanded objective point (XOP)
- 119.89 = super expanded objective point (SXOP)
Overbought/Oversold
Assuming that the medium term trend is now down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (40-60 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
