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 ะก still developing from 120.23. Within the latter there are 2 subwaves (colored magenta in the chart). The targets of the upmove are Fibonacci retracements of 127.25-119.31, and expansions off 119.31-122.64-120.23, 120.23-122.71-121.54.
- 123.07 = contracted objective point (COP)
- 123.28 = .50 retracement
- 123.56 = objective point (OP)
- 123.28 = .50 retracement
- 123.56 = objective point (OP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 120.23-122.71, and expansions off 122.71-121.54-121.92.
Supports:
- 121.47 = .50 ret
- 121.20-18 = confluence area of COP and .618 ret
- 120.75 = OP
- 121.20-18 = confluence area of COP and .618 ret
- 120.75 = OP
Overbought/Oversold
Assuming that the major wave is now moving up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (10-15 pips below the current prices) or into the oversold area (30-40 pips below the current prices), watch for entries long at the specified supports.
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