The GBP/JPY is now moving within subwave C (colored red in the chart) of daily impulse wave C – colored royal blue in the chart. The targets of the upmove are Fibonacci retracements of 133.03-125.47 and expansions off 125.47-129.41-128.29, 128.29-130.37-129.59.
– 131.25 = .764 retracement
– 131.67 = objective point (OP)
– 132.23 = OP
If the price keeps retracing the nearest supports will be Fibonacci retracements of 128.59-131.13.
– 130.54 = .382 retracement
– 130.36 = .50 ret
– 130.18 = .618 ret
Assuming that the medium term trend is up it’s preferable to take oversold readings of the Detrended Oscillator to consider long positions. The oscillator is now at the zero level and the oversold area is within 15-20 pips which roughly corresponds to .382 retracement (130.54).
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