GBP/JPY is developing corrective subwave 4 (colored red in the chart) that is part of impulse wave C of larger degree - colored magenta in the chart. The latter is also part of wave C of still larger degree - colored royal blue in the chart.
The targets of the upmove are Fibonacci retracements of 134.02-130.26, 133.15-130.26, and expansions off 130.26-131.22-130.50, 130.50-131.48-130.72.
Resistances:
- 131.46 = objective point (OP)
- 131.70 = confluence area of .382 and .50 retracements, and OP
- 132.05-14 = .618 and .50 retracements and expanded objective point (XOP)
- 132.31 = XOP
- 132.58 = .618 ret
If the price reverses down and breaks below 130.26 the immediate supports will be Fibonacci retracements of 122.49-139.93, and expansions off 139.93-132.90-137.03, 137.03-130.89-134.02, 134.02-131.79-133.15.
Supports:
- 130.23 = contracted objective point (COP)
- 130.00 = objective point (OP)
- 129.54 = expanded objective point (XOP)
- 129.15 = .618 ret
- 127.88 = OP
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Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
