The GBP/JPY pair is developing the wave A of the medium term uptrend from the point 126.48 (royal blue in the chart) including three subwaves (magenta in the chart) and an impulse subwave C developing from 130.15. Within this wave there are subwaves A, B, and C (red in the chart); the subwave C is developing from 131.39.
Now the upside targets are Fibonacci expansions of 126.48-131.65-130.15, 130.15-132.37-131.39.
Resistances:
- 132.76 = contracted objective point (COP)
- 133.35 = COP
- 133.61 = objective point (OP)
- 134.98 = expanded objective point (XOP)
If the price reverses to the downside, the immediate supports will be Fibonacci retracements of 130.15-132.60.
Supports:
- 131.66 = .382 retracement
- 131.38 = .50 ret
- 131.09 = .618 ret
Overbought/Oversold
The bigger wave is now moving upwards, so it is better 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.
