The GBP/JPY is developing corrective subwave B wave A of medium term uptrend - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 126.02-133.04, 122.49-133.04.
Supports:
- 130.36 = .382 retracement
- 129.53 = .50 ret
- 129.01 = .382 ret
- 128.70 = .618 ret
- 127.76 = .50 ret
- etc.
If the price keeps advancing the immediate resistances will be Fibonacci retracements of 133.04-131.19.
Resistances:
- 131.90 = .382 ret
- 132.12 = .50 ret
- 132.33 = .618 ret
Overbought/Oversold
Assuming that the medium term has reversed to the downside it's preferable to look for shorts when the Detrended Oscillator gets above the zero level (10-20 pips above the current price), or into the overbought area (90-120 pips above the current price - this rougly corresponds to 132.33 Fib resistance level).
Read more on how to apply Fibonacci studies to calculate price targets.
