The GBP/JPY has finished wave A of daily degrree 125.47-129.41 - colored royal blue in the chart - and now is developing corrective wave B. The targets of the downmove are Fibonacci retracements of 125.47-129.41, 127.37-129.41.
Supports:
- 128.15 = .618 retracement
- 127.90 = .382 ret
- 127.44 = .50 ret
- 126.98 = .618 ret
If the price breaks above 129.41 and starts developing wave C its targets will be Fibonacci retracements of 133.03-125.47 and expansions off 125.47-129.41-128.29.
Resistances:
- 130.14 = .618 retracement
- 130.72 = contracted objective point (COP)
Overbought/Oversold
Although the wave down is considered corrective we need confirmation that the trend is really up. Long positions can only be considered when the price breaks above 129.41. Until that stand aside.
Read more on how to apply Fibonacci studies to calculate price targets.