The GBP/JPY pair is developing the corrective wave B of the medium term uptrend from 133.42 (royal blue in the chart). Within this wave we have two subwaves (magenta in the chart), A, and B that is developing from 129.94. Within this wave there are three subwaves (red in the chart), and potential impulse subwave C is developing from 130.08.

The upside targets are Fibonacci expansions 126.48-133.42-129.94, 129.94-133.32-130.08, 130.08-131.57-130.58 and retracements 133.32-130.08.

Resistances:

- 131.70 = .50 retracement
- 132.07-08 = confluence area of objective point (OP) and .618 ret
- 132.17 = contracted objective point (COP)
- 132.99 = expanded objective point (XOP)
- 133.46 = OP
- 134.23 = COP

The downside targets are Fibonacci retracements 126.48-133.42 and expansions 133.42-129.94-133.32.

Supports:

- 129.95 = .50 ret
- 129.84 = objective point (OP)
- 129.13 = .618 ret

Overbought/Oversold

The bigger wave is now moving down, so it is better to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (current prices). Consider the opportunities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.