GBP/JPY has developed downwave 135.11-129.74 - according to wave count this is wave A of medium term downtrend, and now we have corrective wave B developing - colored light green in the chart. Within current wave B there are A and B subwaves of smaller degree - colored red in the chart. The targets of the upmove are Fibonacci retracements of 135.11-129.74, and expansions off 129.74-131.37-130.53.
Resistances:
- 132.43 = .50 retracement
- 133.06-17 = confluence area of .618 ret and expanded objective point (XOP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 129.74-132.30, 122.49-139.93, and expansions off 135.11-129.74-132.30, 139.93-130.26-135.11.
Supports:
- 131.32 = .382 ret
- 132.02 = .50 ret
- 130.72 = .618 ret
- 129.15-13 = confluence area of .618 ret and contracted objective point (COP)
- 128.98 = COP
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (15-25 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.