GBP/JPY is developing subwave 5 (colored red in the chart) within wave C (colored royal blue in the chart) of medium term downtrend. Now the targets of the downmove are Fibonacci retracements of 122.49-139.93, and expansions off 139.93-132.90-137.03, 137.03-135.17-136.09, 136.09-132.91-134.24.
Supports:
- 132.69 = contracted objective point (COP)
- 132.27 = COP
- 131.22-21 = confluence area of super expanded objective point (SXOP) and .50 ret
- 131.06 = objective point (OP)
- 130.00 = OP
If the price reverses up the immediate resistances will be Fibonacci retracements of the wave down from 137.03 - this wave is not developed yet.
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to open short positions when the Detrended Oscillator gets above the zero level (10-15 pips above the current prices) or into the overbought area (45-60 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.