GBP/JPY is developing potential impulse wave A of medium term uptrend from 118.74 (light green in the chart). Within this wave we have three subwaves (royal blue in the chart), and impulse subwave C is moving from 121.85. Within this wave we also have three subwaves (magenta in the chart), and impulse subwave C is developing from 122.07. The latter also has its subwaves (red in the chart), with potential impulse subwave C developing from 123.18.

Now the resistances are Fibonacci retracements of 131.75-118.74, and expansions off 118.74-124.28-121.85, 121.85-124.21-122.07, 122.07-124.58-123.18.

Resistances:

- 124.73 = contracted objective point (COP)
- 125.25-27 = confluence area of .50 retracement and COP
- 125.69 = objective point (OP)
- 125.89 = expanded objective point (XOP)

The supports below are Fibonacci expansions off 124.58-123.18-124.45.

Supports:

- 123.58 = COP
- 123.05 = OP
- 122.18 = XOP

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 (35-50 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.

Performed by Analytical expert: Roman Molodiashin
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