GBP/JPY is developing potential impulse wave РЎ (colored royal blue in the chart) of medium term downtrend from 127.31. Within this wave there are A, B and C subwaves (colored magenta in the chart) with subwave C still developing from 126.55.

The targets of the downmove are Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-124.26-125.33.

Supports:

- 123.91 = contracted objective point (COP)
- 123.71 = objective point (OP)
- 123.04 = OP
- 122.65 = COP

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 126.55-124.16.

Resistances:

- 125.41 = .50 ret
- 125.68 = .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.