GBP/JPY is developing wave A of medium term uptrend from 126.48 (royal blue in the chart). Within this wave we have five subwaves (red in the chart), and impulse subwave 5 is developing from 130.15.
The targets of the upmove are Fibonacci expansions off 126.48-129.69-128.11, 128.11-131.65-130.15, 130.15-131.31-130.85.
Resistances:
- 132.34 = contracted objective point (COP)
- 132.73 = expanded objective point (XOP)
- 133.30 = XOP
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 130.15 - this wave is not developed, so no supports are available so far.
Overbought/Oversold
The bigger wave is now moving up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (20-30 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.
