GBP/JPY is now moving within potential impulse wave C (colored light green in the chart) from 122.71. Wave C will be confirmed when the price breaks below 119.31 (top of wave A). On smaller timeframes this wave has A, B and C subwaves of smaller degree (colored red in the chart), and subwave C is still developing from 122.21. We calculate the immediate supports using Fibonacci expansions off 127.25-119.31-122.71, 122.71-121.54-122.21, 122.21-119.48-119.96.

Immediate supports:

- 119.15 = super expanded objective point (SXOP)
- 118.27 = contracted objective point (COP)
- 117.80 = COP
- 117.23 = objective point (OP)

If the price reverses to the upside to retrace after the downfall, the immediate resistances will be Fibonacci retracements of the wave down from 122.21, however this wave is not developed, so no resistances are available so far.

Overbought/Oversold

Assuming that the major wave is now moving down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (5-10 pips above the current prices) or into the overbought area (20-30 pips above the current prices), watch for entries short at the indicated supports.

Read more on how to trade with Fibonacci levels.