According to wave count GBP/JPY is now developing a weekly wave up (colored plum on the chart). Within this wave we have an intermediate trend which is being corrected now. The targets of the corrective wave are Fibonacci retracement points of 131.17-134.57.
Nearest supports are:
- 133.27 = .382 retracement, reached already
- 132.87 = .50 ret
- 132.47 = .618 ret
In case the price keeps rising the potential targets will be Fib retracement points of 136.00-131.17 and expansion points off 131.17-134.57-133.22, 133.22-134.37-133.43, there also are expansions off 130.40-136.00-131.17.
Price targets above the current level:
- 134.58-68 = confluence area of contracted objective point (COP) and objective point (OP)
- 134.86 = .764 ret
- 135.29-32 = confluence area of expanded objective point (XOP) and COP
Overbought/Oversold
The Detrended Oscillator is in the positive area which means it's not the best time to initiate a long position with the prevailing uptrend. The nearest oversold level is some 40-50 pips below which is 133.90-134.00 area. Long positions against these levels are favored in case bottoming signals appear.