GBP/JPY is developing corrective wave 4 (colored light green in the chart) of medium term uptrend from 127.25. Within this wave there are three subwaves (colored royal blue in the chart), and impulse subwave РЎ is still developing from 125.63. Within the latter there are also three subwaves (colored magenta in the chart) with impulse subwave C developing from 124.22. The targets below are Fibonacci retracements of 116.91-127.25, and expansions off 127.25-123.85-125.63, 125.63-122.90-124.22, 124.22-122.26-123.09.

Supports:

- 122.23 = objective point (OP)
- 122.08 = .50 retracement
- 121.88 = contracted objective point (COP)
- 121.49 = OP
- 121.13 = OP

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 125.63-122.26.

Resistances:

- 123.55 = .382 ret
- 123.94 = .50 ret
- 124.34 = .618 ret

Overbought/Oversold

Assuming that the major wave is now down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (20-30 pips above the current prices).

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