GBP/JPY is developing corrective wave 4 of medium term uptrend - colored royal blue in the chart. Wave 4 has 2 subwaves within it (A-B), and subwave B is still developing - colored magenta in the chart. The targets of the upmove are Fibonacci retracements of 139.93-135.19, and expansions (if the price goes higher than 139.93) off 122.49-133.04-130.18 (waves 1-2), 130.18-139.93-135.19 (waves 3-4).
Resistances:
- 137.00 = .382 retracement
- 137.56 = .50 ret
- 138.12 = .618 ret
- 140.73 = objective point (OP)
- 141.22 = contracted objective point (COP)
If the price keeps declining the immediates supports will be Fibonacci retracements of 130.18-139.93, 122.49-139.93, and expansions off 139.93-135.19-136.96.
Supports:
- 135.06 = .50 retracement
- 134.03-133.90 = confluence area of COP and .618 retracement
- 133.27 = .382 ret
- 132.22 = OP
Overbought/Oversold
Assuming that the wave of a larger degree (corrective subwave B) is moving up it's preferable to open long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (10-30 pips).
Read more on how to apply Fibonacci studies to calculate price targets.