Wave analysis
Roman Molodiashin
GBP/JPY is developing corrective wave B (colored light green in the chart) of medium term downtrend from 119.31. Within this wave there are A, B and C subwaves (colored royal blue in the chart), with subwave C still developing from 120.86. The targets of the upmove are Fibonacci expansions off 119.31-122.64-120.86, 120.86-122.17-121.11.
Resistances:
- 121.92 = contracted objective point (COP)
- 122.42 = objective point (OP)
- 122.92 = COP
- 123.23 = expanded objective point (XOP)
- 122.42 = objective point (OP)
- 122.92 = COP
- 123.23 = expanded objective point (XOP)
If the price keeps declining the immediate supports will be Fibonacci retracements of 119.31-122.64, and expansions off 122.64-120.86-122.17.
Supports:
- 121.07 = COP
- 120.58 = .618 retracement
- 120.39 = OP
- 120.58 = .618 retracement
- 120.39 = OP
Overbought/Oversold
Assuming that the major wave is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (15-30 pips below the current prices), watch for long trades at the specified supports.
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