GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term uptrend from 116.91. Within this wave there are three subwaves (colored royal blue in the chart), and potential subwave C is still developing from 119.93. Within the latter wave there also three waves (colored magenta in the chart) with subwave C developing from 120.62. The targets of the upmove are Fibonacci retracements of 130.81-116.78, and expansions off 116.78-120.78-116.91, 116.91-122.58-119.93.
Resistances:
- 127.38 = super expanded objective point (SXOP)
- 127.81 = .786 retracement
- 129.10 = expanded objective point (XOP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 121.77-127.25.
Supports:
- 125.16 = .382 retracement
- 124.51 = .50 ret
- 123.86 = .618 ret
Overbought/Oversold
Assuming that the major wave is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (140-160 pips below the current prices) or into the oversold area (190-210 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
