The GBP/JPY is moving in correction to 135.56-131.14 (wave A of medium term downtrend, colored magenta in the chart, is completed). This current wave is composed of A-B-C waves of smaller degree - colored red in the chart, and subwave C is still developing.
The targets of the upmove are Fibonacci expansions off 129.75-135.56-131.14, 131.14-134.04-132.73, 132.73-133.67-132.91.
Resistances:
- 134.43-52 = confluence area of expanded objective point (XOP) and contracted objective point (COP)
- 134.73 = COP
- 135.37 = super expanded objective point (SXOP)
- 135.63 = objective point (OP)
If the decline resumes the immediate supports will be Fibonacci retracements of 132.91-134.20, 131.14-134.04.
Supports:
- 133.71 = .382 retracement
- 133.56 = .50 ret
- 133.40 = .618 ret
- 133.03 = .382 ret
- 132.67 = .50 ret
- 132.31 = .618 ret
Overbought/Oversold
Assuming that medium term trend is up it's preferable to use oversold condition of the Detrended Oscillator (current prices minus 20-35 pips) or its cross below the zero level (current prices) to consider long positions.
Read more on how to apply Fibonacci studies to calculate price targets.