GBP/JPY is now moving within wave 5 of medium term uptrend (colored royal blue in the chart) from 125.41. Within this wave we have subwaves A, B, and C (colored magenta in the chart) with subwave C still developing from 126.63. The latter, however, also has its subwaves (they're colored red in the chart), and subwave C is developing from 128.69.
Now the targets above the current price level are Fibonacci expansions off 119.53-126.77-125.41, 125.41-129.71-126.63, 126.63-129.56-128.69.
Resistances:
- 129.88 = contracted objective point (COP)
- 130.50 = COP
- 130.93 = objective point (OP)
- 131.62 = OP
- 130.50 = COP
- 130.93 = objective point (OP)
- 131.62 = OP
However if the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 126.63 - this wave is not developed, so no supports are available so far.
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 (10-15 pips below the current prices) or into the oversold area (40-55 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.
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