Wave analysis
Roman Molodiashin
GBP/JPY is developing wave A (colored light green in the chart) of medium term downtrend from 127.25. Within this wave there are three subwaves (colored royal blue in the chart), and impulse subwave ะก is still developing from 125.63. Within the latter there are five subwaves (colored magenta in the chart) with impulse subwave 5 developing from 124.22. The wave from 124.22 has four subwaves (colored red in the chart), with potential subwave 4 still developing from 119.31. The targets below are Fibonacci expansions off 127.25-123.85-125.63, 125.63-122.90-124.22, 124.22-120.82-121.70, 121.70-119.97-120.87.
Supports:
- 119.14 = objective point (OP)
- 118.30 = OP
- 118.07 = expanded objective point (XOP)
- 118.30 = OP
- 118.07 = expanded objective point (XOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 121.70-119.31.
Resistances:
- 120.22 = .382 retracement
- 120.51 = .50 ret
- 120.79 = .618 ret
- 120.51 = .50 ret
- 120.79 = .618 ret
Overbought/Oversold
Assuming that the major wave is now down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (15-25 pips above the current prices).
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