GBP/JPY is developing corrective wave 4 of the medium term downtrend - colored red in the chart. This wave now consists of A-B-C subwaves - colored orange red. And the targets of this upmove are Fibonacci retracements of 134.17-130.83 (wave 3), 133.36-130.83 (subwave C within wave 3), and expansions off 130.83-132.01-131.44.
Resistances:
- 132.10-11-17 = confluence area of .50 and .382 retracements and contracted objective point (COP)
- 132.39-50 = confluence area of .618 ret and .50 ret
- 132.62 = objective point (OP)
- 132.89 = .618 ret
- 133.35 = expanded objective point (XOP)
If the price reverses down to continue the medium trend the nearest supports will be Fibonacci retracements of 126.43-134.19, and expansions off 134.17-130.83-132.10.
Supports:
- 130.31 = .50 retracement
- 130.04 = COP
- 129.39 = .618 ret
- 128.76 = OP
Overbought/Oversold
The Detrended Oscillator is flattening around the zero level confirming the correction. Assuming that the prevailing trend is still down it's preferable to seek for topping signals to go short when the price hits a Fib resistance (see above) or gets into the oversold - 30 pips to go (which corresponds to 132.10-17 resistance area).
Read more on how to apply Fibonacci studies to calculate price targets.