The GBP/JPY has just finished wave 133.04-130.18 - corrective wave B of medium term uptrend. Now we have wave C developing - colored magenta in the chart. To confirm this wave break above 133.04 is needed. So far the targets above the current price are Fibonacci retracements 133.04-130.18, expansions off 122.49-133.04-130.18, 130.18-130.93-130.22.
Resistances:
- 130.97 = objective point (OP)
- 131.27 = .382 retracement
- 131.43 = expanded objective point (XOP)
- 131.61 = .50 ret
- 131.95 = .618 ret
- 132.18 = .super expanded objective point (SXOP)
If the price keeps declining the immediate supports will be Fibonacci retracements of 126.02-133.04, 122.49-133.04, and expansions off 133.04-130.18-130.93.
Supports:
- 129.53 = .50 ret
- 129.16 = contracted objective point (COP)
- 129.01 = .382 ret
- 128.70 = .618 ret
Overbought/Oversold
Assuming that the medium term (beginning of wave C) is now up it's preferable to look for longs when the Detrended Oscillator gets below the zero level (10-20 pips below the current price), or into the oversold area (40-50 pips below the current price).
Read more on how to apply Fibonacci studies to calculate price targets.