GBP/JPY is developing impulse subwave C (colored royal blue in the chart) that is part of impulse wave A of a larger degree (colored light green in the chart) from 117.22. Within the former subwave there are also waves of a still smaller degree - they are A, B, and C (colored magenta in the chart), and subwave C is still developing from 121.62. Within C we have 1, 2, 3, and potential 4th subwave that is developing from 126.77 (colored red in the chart).
Now the targets of the upmove are Fibonacci expansions off 117.22-121.98-119.53, 119.53-123.11-121.62, 121.62-123.44-122.55, 122.55-126.77-125.59.
Resistances:
- 127.23-31-41 = confluence area of two expanded objective points (XOP), objective point (OP) and super expanded objective point (SXOP)
- 128.20 = contracted objective point (COP)
- 128.20 = contracted objective point (COP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 121.62-126.77.
Supports:
- 124.80 = .382 retracement
- 124.19 = .50 ret
- 123.59 = .618 ret
- 124.19 = .50 ret
- 123.59 = .618 ret
Overbought/Oversold
The bigger wave is now moving up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (25-30 pips below the current prices) or into the oversold area (50-65 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.
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