GBP/JPY is developing wave A of medium term uptrend from 126.48 (royal blue in the chart). Within this wave we have three subwaves (magenta in the chart), and corrective subwave 4 is developing from 133.42.
The targets below are Fibonacci retracements of 130.15-133.42, 126.48-133.42.
Supports:
- 131.79 = .50 retracement
- 131.40 = .618 ret
- 130.77 = .382 ret
- 129.95 = .50 ret
The targets above are Fibonacci expansions off 126.48-131.65-130.15.
Resistances:
- 133.35 = contracted objective point (COP)
- 135.32 = objective point (OP)
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 (25-40 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.
