GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are five subwaves (colored royal blue in the chart), and subwave A is now developing against the downtrend from 116.78, therefore wave C may be coming to an end. Within this wave (A) there are two waves of still smaller degree (colored magenta) with subwave B still developing. The targets of the upmove are Fibonacci retracements of 127.31-116.78, and expansions off 116.82-120.78-117.97.

Resistances:

- 120.42 = contracted objective point (COP)
- 120.80-85 = confluence area of .50 retracement and objective point (OP)
- 121.93-122.05 = OP and .618 ret

If the price keeps falling the immediate supports will be Fibonacci retracements of 116.78-120.78, and expansions off 130.81-123.27-127.31, 126.55-123.04-124.36, 124.36-116.78-120.78, 120.78-119.06-120.73.

Supports:

- 117.95 = expanded objective point (XOP)
- 116.23-10 = confluence area of super expanded objective point (SXOP) and contracted objective point (COP)
- 115.17-11 = SXOP and XOP

Overbought/Oversold

Assuming that the major wave is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (5-10 pips below the current prices) or into the oversold area (40-60 pips below the current prices).

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