Pound/yen is still developing daily downtrend within wave C (colored light green on the chart). However within this wave we have a set of A-B daily waves (colored royal blue) with wave B being corrective. The targets of the corrective wave B remain the same as previously - they are Fibonacci retracements of daily A wave (royal blue) 133.59-127.89, and expansions off A-B hourly waves (the magenta ones) 127.89-130.30-128.55.
Resistances:
- 130.04 = contracted objective point (COP)
- 130.74 = .50 retracement
- 130.96 = objective point (OP)
- 131.41 = .618 ret
- 132.45 = expanded objective point (XOP)
In case the price resumes the daily trend and reverses down the nearest targets below the current price level will be Fibonacci expansions off the daily A-B (royal blue) 133.59-127.89-130.30, and hourly (colored red) 130.30-128.55-129.98.
Supports:
- 129.80 = contracted objective point (COP)
- 128.23 = objective point (OP)
- 128.04 = COP, the old strategic target
- 127.15 = expanded objective point (XOP)
- 126.78 = COP
Overbought/Oversold
The Detrended Oscillator is at the zero level with OB and OS levels narrowing, since the pair is trading in a flat. Assuming that the prevailing trend is down it's advisable to look for topping signals near the Fibonacci resistances to enter short. The nearest overbought is 40-50 pips above the current price.