GBP/JPY is developing impulse wave РЎ (colored royal blue in the chart) of medium term downtrend from 127.31. Within this wave there are A and B subwaves (colored red in the chart) with subwave B still developing from 125.61.

The targets of the downmove are Fibonacci retracements of 123.27-127.31, and expansions off 130.81-123.27-127.31, 127.31-125.61-126.51, 126.51-125.82-126.48.

Supports:

- 125.79 = objective point (OP)
- 125.46 = contracted objective point (COP)
- 125.36-29 = confluence area of expanded objective point (XOP) and .50 retracement
- 124.81 = confluence area of OP and .618 ret
- 124.67 = super expanded objective point (SXOP)
- etc.

If the price reverses to the upnside the immediate resistances will be Fibonacci retracements of 130.81-123.27, and expansions off 123.27-127.31-125.61.

Resistances:

- 127.31 = 0% ret
- 127.93 = .618 ret
- 128.11 = COP
- 129.65 = OP

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 (30-40 pips above the current prices).

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