GBP/JPY is developing subwave C (colored red in the chart) within corrective wave B of medium term downtrend - colored royal blue in the chart. The targets above the current price are Fibonacci retracements off 139.93-132.90, and expansions off 132.90-135.73-134.61, 134.61-135.87-134.71, 134.71-135.67-135.01.
Resistances:
- 135.97 = confluence area of two objective points (OP)
- 136.36-42 = confluence area of contracted objective point (COP) and .50 retracement
- 136.56 = expanded objective point (XOP)
- 136.75 = XOP
- 137.24 = .618 ret
- 137.44 = objective point (OP)
- 137.52 = super expanded objective point (SXOP)
- 138.91 = SXOP
If the price reverses down the immediate supports will be Fibonacci retracements of 132.90-135.87.
Supports:
- 134.74 = .382 ret
- 134.38 = .50 ret
- 134.03 = .618 ret
Overbought/Oversold
Assuming that the wave of a larger degree is moving up it's preferable to open long positions when the Detrended Oscillator gets below the zero level (10-15 pips below the current prices) or into the oversold area (30-40 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.