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) with impulse subwave 5 still developing from 124.36. Within wave 5 there are A, B and C subwaves of smaller degree (colored magenta in the chart), with subwave C still developing from 122.22.

The targets of the downmove are Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-123.04-124.36, 124.36-120.61-122.22, 122.22-119.41-120.51, 120.51-119.04-119.76.

Supports:

- 118.29 = objective point (OP)
- 117.70 = OP
- 117.38 = expanded objective point (XOP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 120.51-118.32.

Resistances:

- 119.16 = .382 retracement
- 119.41 = .50 ret
- 119.67 = .618 ret

Overbought/Oversold

Assuming that the major wave is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (10-15 pips above the current prices) or into the overbought area (30-40 pips above the current prices).

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