The GBP/JPY is now developing impulse subwave C (colored red in the chart) within corrective wave 4 of larger degree (colored light green). The targets of the downmove are Fibonacci retracements of 129.75-135.56, 131.62-135.56, and expansions off 135.56-133.31-134.61, 134.62-133.35-133.85.
Supports:
- 133.07 = contracted objective point (COP)
- 132.66 = .50 ret
- 132.58 = objective point (OP)
- 132.37 = OP
- 131.97 = confluence area of objective point (OP) and .618 ret
- 131.80 = expanded objective point (XOP)
- etc.
If the price reverses up the immediate resistances will be Fibonacci retracements of the wave down from 134.62 - this wave is not developed yet.
Overbought/Oversold
Assuming that wave C of the medium term trend down is developing, it's preferable to use overbought readings (45-55 pips away from the current price) of the Detrended Oscillator or its cross above the zero level (20-25 pips away from the current price) to consider short positions.
Read more on how to apply Fibonacci studies to calculate price targets.