GBP/JPY is moving within wave C of medium term downtrend - colored magenta in the chart. On smaller timeframes this wave consists of 5 subwaves, with wave 5 still developing - colored yellow in the chart.
The targets of the downmove are Fibonacci expansions off 133.03-130.75-131.61 and 131.61-130.96-131.26.
Supports:
- 129.56 = super expanded objective point (SXOP)
- 129.33 = objective point (OP)
If the price keeps moving up its nearest resistances will be Fibonacci retracements of 131.61-129.98.
Resistances:
- 130.60 = .382 retracement
- 130.80 = .50 ret
- 139.99 = .618 ret
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Overbought/Oversold
Assuming that medium term trend is down it's preferable to use overbought readings of the Detrended Oscilaltor with Fib resistances. The overbought area is 15-20 pips away but there's no Fib resistance in that area. So now it's reasonable to stand aside in the meantime.
Read more on how to apply Fibonacci studies to calculate price targets.
