GBP/JPY is moving within wave C of medium term uptrend - colored magenta in the chart. Current wave C consists of 5 subwaves - colored yellow in the chart. And now corrective subwave A that may become part of corrective A-B-C cycle is developing. The targets of the downmove are Fibonacci retracements of 133.99-137.03.
Supports:
- 135.87 = .382 retracement
- 135.51 = .50 ret
- 135.15 = .618 ret
If the uptrend resumes and the price breaks above 137.03 the immediate resistances will be Fibonacci retracements of 139.93-132.90, and expansions off 132.90-135.87-133.99, 133.99-134.99-134.28, 134.28-136.67-136.03.
Resistances:
- 136.90-96 = confluence area of super expanded objective point (SXOP) and objective point (OP)
- 137.24 = .618 retracement
- 137.51 = contracted objective point (COP)
- 138.42 = OP
- 138.80 = expanded objective point (XOP)
Overbought/Oversold
Assuming that the wave of a larger degree is moving up it's preferable to open long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (current prices), however it would be more prudent to wait for a deeper retracement at least to 135.87 (.382 Fib ret).
Read more on how to apply Fibonacci studies to calculate price targets.
