The GBP/JPY pair is developing the corrective wave B of the medium term uptrend from 133.42 (royal blue in the chart). Within this wave we have two subwaves (red in the chart) and a corrective subwave B developing from 129.94.
The targets below are Fibonacci retracements 126.48-133.42.
Supports:
- 129.95 = .50 retracement
- 129.13 = .618 ret
The upside targets are Fibonacci expansions 126.48-133.42-129.94 and retracements 133.42-129.94.
Resistances:
- 131.27 = .382 ret
- 131.68 = .50 ret
- 132.09 = .618 ret
- 134.23 = contracted objective point (COP)
Overbought/Oversold
The bigger wave is now moving downwards, so it is recommended to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (25-40 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.
