GBP/JPY has just developed impulse subwave A (colored magenta in the chart) that is part of impulse wave C of larger degree (colored light green in the chart) from 122.71. Now potential corrective subwave B is developing from 118.94. The targets of this wave are Fibonacci retracements of 122.71-118.94.
Resistances:
- 120.38 = .382 retracement
- 120.82 = .50 ret
- 121.27 = .618 ret
- 121.90 = .786 ret
However, if the price reverses to the downside from 120.14, the immediate supports will be Fibonacci expansions off 127.25-119.31-122.71, 122.71-118.94-120.14.
Supports:
- 117.81-80 = confluence area of two contracted objective points (COP)
Overbought/Oversold
Assuming that the major wave is now moving up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (10-15 pips below the current prices) or into the oversold area (45-60 pips below the current prices).
