Pound/yen is now developing wave C of the med term uptrend (colored red on the chart). The price has breached the major resistance at 133.88 (.618 retracement) and is moving further.
The nearest resistances as of now are Fibonacci expansions off 127.62-134.01-132.93 and 132.93-134.24-133.65.
Resistances:
- 134.96 = objective point (OP)
- 135.77 = expanded objective point (XOP)
- 136.88 = contracted objective point (COP)
- 137.08 = super expanded objective point (SXOP)
In case the price reverses down for a correction the nearest supports will be Fibonacci retracements of the waves up starting from 132.93 and from 127.62 (waves not developed yet). The wave from 127.62 will be formed when 132.93 is breached, since this is the base of wave C.
Overbought/Oversold
The Detrended Oscillator is moving into the overbought area. Assuming that the prevailing trend is up, it's advisable to seek for bottoming signals to enter long. The nearest oversold is 55-65 pips below the current price (support).