GBP/JPY is developing potential impulse wave С of medium term downtrend from 126.95 (colored magenta in the chart). Within this wave there are two subwaves (colored orange red in the chart) with subwave B still developing from 125.66.
The targets of the downmove are Fibonacci retracements of 123.27-126.95, and expansions off 130.81-123.27-126.95, and 126.95-125.66-126.77.
Supports:
- 125.54-48 = confluence area of .382 retracement and objective point (OP)
- 125.11 = .50 ret
- 124.68 = confluence area of .618 ret and expanded objective point (XOP)
- 123.39 = super expanded objective point (SXOP)
- 122.29 = contracted objective point (COP)
If the price reverses to the upside and breaks above 126.95 the immdiate resistances will be Fibonacci retracements of 130.81-123.27, and expansions off 123.27-126.95-125.66.
Resistances:
- 127.04 = .50 ret
- 127.93 = confluence area of .618 ret and COP
Overbought/Oversold
Assuming that the major trend is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (15-20 pips above the current prices) or into the overbought area (50-65 pips above the current prices).
The targets of the downmove are Fibonacci retracements of 123.27-126.95, and expansions off 130.81-123.27-126.95, and 126.95-125.66-126.77.
Supports:
- 125.54-48 = confluence area of .382 retracement and objective point (OP)
- 125.11 = .50 ret
- 124.68 = confluence area of .618 ret and expanded objective point (XOP)
- 123.39 = super expanded objective point (SXOP)
- 122.29 = contracted objective point (COP)
If the price reverses to the upside and breaks above 126.95 the immdiate resistances will be Fibonacci retracements of 130.81-123.27, and expansions off 123.27-126.95-125.66.
Resistances:
- 127.04 = .50 ret
- 127.93 = confluence area of .618 ret and COP
Assuming that the major trend is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (15-20 pips above the current prices) or into the overbought area (50-65 pips above the current prices).
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