GBP/JPY is developing corrective wave B (colored light green in the chart) of medium term downtrend from 119.31. Within this wave there are A and B waves (colored magenta in the chart) of smaller degree, with subwave B still developing from 122.64. The targets below the current price are Fibonacci retracements of 119.31-122.64, and expansions off 122.64-121.24-122.23.

Supports:

- 120.83 = objective point (OP)
- 120.58 = .618 retracement
- 119.96 = expanded objective point (XOP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 127.25-119.31, 125.63-119.31, 122.64-120.90, and expansions off 119.31-122.64-120.90.

Resistances:

- 121.56 = .382 ret
- 121.77 = .50 ret
- 121.98 = .618 ret
- 122.96 = contracted objective point (COP)
- 123.22 = .618 ret
- 123.28 = .50 ret

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 (10-15 pips below the current prices) or into the oversold area (40-55 pips below the current prices).

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