GBP/JPY has developed the wave from 135.11 to 124.16 and is now moving in a corrective wave against this movement. Current wave A of long term uptrend (colored light green in the chart) now has A, B and C subwaves, with subwave C still developing from 125.29 (colored red in the chart).
The immediate resistances are Fibonacci retracements of 139.94-124.16, 135.11-124.16, and expansions off 124.16-126.96-125.29.
Resistances:
- 129.63-82 = confluence area of .50 retracement and expanded objective point (XOP), already reached (!)
- 130.19 = .382 ret
- 130.93 = .618 ret
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 125.29 - this wave is not developed yet, so no supports are available so far.
Overbought/Oversold
Assuming that the medium term trend is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (120-130 pips below the current prices) or into the oversold area (170-200 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
The immediate resistances are Fibonacci retracements of 139.94-124.16, 135.11-124.16, and expansions off 124.16-126.96-125.29.
Resistances:
- 129.63-82 = confluence area of .50 retracement and expanded objective point (XOP), already reached (!)
- 130.19 = .382 ret
- 130.93 = .618 ret
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 125.29 - this wave is not developed yet, so no supports are available so far.
Assuming that the medium term trend is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (120-130 pips below the current prices) or into the oversold area (170-200 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
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