GBP/JPY is still moving within impulse wave C of medium term downtrend (colored light green in the chart) from 122.71, and in this wave there are three subwaves (colored magenta in the chart) with impulse subwave C still developing from 120.14.
The targets of the decline are Fibonacci expansions off 127.25-119.31-122.71, 122.71-118.94-120.14, 120.14-119.12-119.68.
Supports:
- 118.03 = expanded objective point (XOP)
- 117.81-80 = confluence area of two contracted objective points (COP)
- 117.01 = super expanded objective point (SXOP)
- 116.37 = objective point (OP)
If the price keeps advancing the immediate resistances will be Fibonacci retracements of 120.14-118.20.
Resistances:
- 118.94 = .382 retracement
- 119.17 = .50 ret
- 119.40 = .618 ret
Overbought/Oversold
The bigger wave is now moving down, so it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (20-30 pips above the current prices).
