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 121.34. Subwave C was confirmed when the price broke above 122.79 (top of subwave A). However it will be over if the price breaks below 121.34.
Now the targets of the upmove are Fibonacci retracements of 127.25-117.22, and expansions off 117.22-121.98-119.53, 119.53-122.79-121.34, 121.34-123.11-121.62.
Resistances:
- 122.71 = contracted objective point (COP)
- 123.35-39-42 = confluence area of COP, objective point (OP), and .618 retracement
- 123.75 = OP
- 124.29 = OP
- 123.35-39-42 = confluence area of COP, objective point (OP), and .618 retracement
- 123.75 = OP
- 124.29 = OP
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 119.53-123.11, and expansions off 123.11-121.98-122.86.
Supports:
- 121.32 = .50 ret
- 121.03 = expanded objective point (XOP)
- 120.90 = .618 ret
- 121.03 = expanded objective point (XOP)
- 120.90 = .618 ret
Overbought/Oversold
The bigger wave is now moving up, therefore it's preferable to try long positions when the Detrended Oscillator goes below the zero level (30-35 pips below the current prices) or into the oversold area (60-75 pips below the current prices).
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