GBP/JPY is developing potential impulse wave РЎ (colored royal blue in the chart) of medium term downtrend from 126.55. Within this wave there are A, B and C subwaves (colored magenta in the chart) with subwave C still developing from 124.76.

The targets of the downmove are Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-124.11-124.76.

Supports:

- 123.71 = objective point (OP)
- 123.25 = contracted objective point (COP)
- 122.65 = COP
- 122.32 = OP
- 121.95 = expanded objective point (XOP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 126.55 - this wave is not developed so no resistances are available so far.

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 (5-10 pips above the 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.