GBP/JPY is moving within corrective wave B (colored magenta) against 134.19-129.33. The wave up now consists of two subwaves with subwave B developing (colored red in the chart). The targets of the corrective upmove are Fibonacci retracements of 129.33-134.19 and expansions off 129.33-131.74-130.16.
Resistances:
- 131.65 = contracted objective point (COP)
- 131.76 = .50 retracement
- 132.33 = .618 ret
- 132.57 = objective point (OP)
If the price keeps declining the nearest supports will be Fibonacci expansions off 134.19-129.33-131.74, and 131.74-130.76-130.89.
Supports:
- 129.91 = COP
- 129.31 = OP
- 128.74 = COP
- 128.33 = expanded objective point (XOP)
Overbought/Oversold
Assuming that the wave up is corrective it's preferable to use the Detrended Oscillator's readings to consider shorts when it hits overbought level - 20-30 pips to go - and a Fib resistance. This is the area of 130.76-130.95 retracements.
Read more on how to apply Fibonacci studies to calculate price targets.