GBP/JPY is still moving within corrective wave 4 of medium term downtrend - colored royal blue in the chart. This wave has A, B and C subwaves (colored magenta) and the latter is also comprised of A, B and C subwaves of still smaller degree - colored red in the chart. The targets of the upmove are Fibonacci retracements of 137.03-130.26, and expansions off 130.26-133.16-130.74, 130.74-132.96-131.25, 131.25-132.26-131.41.
Resistances:
- 133.47 = objective point (OP)
- 133.64 = confluence area of OP and .50 retracement
- 134.44 = .618 ret
- 134.84 = expanded objective point (XOP)
If the price keeps declining the immediate supports will be Fibonacci retracements of 130.74-133.11.
Supports:
- 132.20 = .382 ret
- 131.93 = .50 ret
- 131.65 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down but a corrective wave up is developing it's preferable to stand aside or try longs when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (25-40 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.