GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are five subwaves (colored royal blue in the chart), and subwave A is now developing against the downtrend from 116.78. Within this wave there are four waves of still smaller degree (colored orange red) with subwave 4 still developing. the targets of the upmove are Fibonacci retracements of 127.31-116.78, and expansions off 116.82-118.84-117.70.

Resistances:

- 120.80 = .382 retracement
- 120.97 = expanded objective point (XOP)
- 122.05 = .50 ret

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 116.78-120.39.

Supports:

- 119.01 = .382 ret
- 118.59 = .50 ret
- 118.16 = .618 ret

Overbought/Oversold

Assuming that the major wave is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (5-10 pips below the current prices) or into the oversold area (30-40 pips below the current prices).

Read more on how to apply Fibonacci studies to calculate price targets.