GBP/JPY is developing impulse subwave C (colored red in the chart) within impulse wave C of medium term uptrend - colored magenta in the chart. The immediate resistances are Fibonacci expansions off 122.49-133.04-130.18, and 130.18-133.76-132.38, and also 132.38-134.42-133.84.
Resistances:
- 136.70 = contracted objective point (COP)
- 137.14 = expanded objective point (XOP)
- 138.17 = XOP
If the price reverses down the immediate supports will be Fibonacci retracements of the wave up from 132.38 - 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 (25-30 pips below the current price) or into the oversold area (50-60 pips to go).
Read more on how to apply Fibonacci studies to calculate price targets.
