GBP/JPY is developing impulse wave РЎ (colored royal blue in the chart) of medium term downtrend from 127.31. The targets of the downmove are Fibonacci retracements of 123.27-127.31, and expansions off 130.81-123.27-127.31, 127.31-126.15-126.95, 126.95-125.61-126.28.
Supports:
- 125.45 = contracted objective point (COP)
- 125.29 = .50 retracement
- 125.07 = expanded objective point (XOP)
- 124.94 = objective point (OP)
- 124.81 = .618 ret
- 124.11 = XOP
- etc.
If the price reverses to the upnside the immediate resistances will be Fibonacci retracements of 130.81-123.27, and expansions off 123.27-127.31-125.61.
Resistances:
- 127.93 = .618 ret
- 128.11 = COP
- 129.65 = OP
Overbought/Oversold
Assuming that the major wave is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (10-20 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
