GBP/JPY is still developing impulse wave C of medium term downtrend (colored light green in the chart) that started from 122.71, and inside this wave on smaller scale there are three subwaves (colored royal blue in the chart), and impulse subwave C is developing from 119.05. This wave has been confirmed as it broke below the top of wave A - 118.20.
The immediate supports are Fibonacci expansions off 122.71-118.20-119.05, 119.05-117.66-117.83.
Supports:
- 116.95 = contracted objective point (COP)
- 116.44 = objective point (OP)
- 116.26 = COP
- 115.58 = expanded objective point (XOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 119.05 - this wave is not developed yet, so no resistances are available so far.
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 (15-25 pips above the current prices).
