The GBP/JPY is moving on within potential wave C of medium term uptrend - colored magenta in the chart. To confirm this wave break above 133.04 is needed. Р•he targets above the current price are Fibonacci expansions off 122.49-133.04-130.18.
Resistances:
- 133.04 = previous peak (100%)
- 134.21 = super contracted objective point (SCOP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 130.18 - this wave is not developed yet.
Overbought/Oversold
Assuming that the medium term is now up it's preferable to look for longs when the Detrended Oscillator gets below the zero level (25-35 pips below the current price), or into the oversold area (45-55 pips below the current price).
Read more on how to apply Fibonacci studies to calculate price targets.
