GBP/JPY is now moving within longterm and intermediate uptrend. However, the intermediate trend is now being corrected, wave B is developing (colored orange red on the chart) . The targets of the corrective wave B are Fibonacci retracement points of 132.35-135.80 and expansions off 135.80-134.28-135.60.
The targets below the current level are:
– 134.08-07 = confluence area of objective point (OP) and .50 retracement
– 133.67 = .618 retracement
– 133.16-14 = confluence area of .764 retracement and expanded objective point (XOP)
In case the price advances the nearest targets above are Fibonacci expansions off 130.40-136.00-131.17, 131.17-134.68-132.35, 132.35-135.80-134.28.
The nearest targets above are:
– 135.81 = objective point (OP)
– 134.61 = contracted objective point (COP)
– 136.77 = OP
Overbought/Oversold
The Detrended Oscillator is slightly below the zero level. However the nearest oversold level lies within 20-30 pips away, if we look at Fibonacci supports – it is 134.08-07 area that we have to watch for. In case a reversal signal appears there a long positin is favored.
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