GBP/JPY is developing impulse wave РЎ (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are four subwaves (colored royal blue in the chart) with subwave 4 still developing from 123.04.

The targets of the upmove are Fibonacci retracements of 123.04-126.55, and expansions off 123.04-123.93-123.11, 123.11-124.36-123.60.

Resistances:

- 124.37-38 = confluence area of contracted objective point (COP) and .382 retracement
- 124.55 = expanded objective point (XOP)
- 124.80-85 = confluence area of .50 ret and objective point (OP)
- 125.21 = .618 ret
- 125.44 = super expanded objective point (SXOP)
- 125.62 = XOP

If the price continues the downtrend the immediate supports will be Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-123.04-124.36.

Supports:

- 122.65 = COP
- 122.19 = COP
- 121.95 = XOP

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 (45-60 pips above the current prices).

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