GBP/JPY has finished upwave from 130.26 to 135.11. According to wave count on larger timeframes that was corrective wave B of long term downtrend - colored plum in the chart. Now the price stands at the beginning of potential impulse wave C. On smaller timeframes this wave has A, B and C subwaves in it - colored orange red in the chart. The targets of the downmove are Fibonacci expansions off 135.11-133.45-134.33.
Supports:
- 131.64 = expanded objective point (XOP)
If the price reverses up the immediate resistances will be Fibonacci retracements of 135.11-131.94.
Resistances:
- 133.15 = .382 retracement
- 133.53 = .50 ret
- 133.90 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try shorts when the Detrended Oscillator gets above the zero level (5-10 pips above the current prices) or into the overbought area (35-50 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
