GBP/JPY is developing impulse wave A of medium term uptrend from 127.04 (light green in the chart). Within this wave we have three subwaves (red in the chart), and potential impulse subwave C is developing from 130.14.
Now the immediate resistances are Fibonacci expansions off 127.04-131.73-130.14, and 130.14-131.19-130.63.
Resistances:
- 131.68 = objective point (OP)
- 132.33 = expanded objective point (XOP)
- 133.04 = contracted objective point (COP)
- 133.38 = super expanded objective point (SXOP)
IF the price reverses to the downside the immediate supports will be Fibonacci retracements of 127.04-131.73.
Supports:
- 129.94 = .382 retracement
- 129.38 = .50 ret
- 128.83 = .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 (current prices) or into the oversold area (25-35 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.
Read more on how to trade with Fibonacci levels.
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