GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are five subwaves (colored royal blue in the chart) with impulse subwave 5 still developing from 124.36.
The targets of the downmove are Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-123.04-124.36, 124.36-123.51-124.22.
Supports:
- 122.19 = contracted objective point (COP)
- 121.99-95 = confluence area of super expanded objective point (SXOP) and expanded objective point (XOP)
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 (10-15 pips above the current prices) or into the overbought area (35-50 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
