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 three waves of still smaller degree (colored red) with subwave C still developing. The targets of the upmove are Fibonacci retracements of 127.31-116.78, and expansions off 116.82-120.39-118.71.

Resistances:

- 120.80 = .382 retracement
- 120.92 = contracted objective point (COP)
- 122.05 = .50 ret
- 122.28 = objective point (OP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 116.78-120.78.

Supports:

- 119.25 = .382 ret
- 118.78 = .50 ret
- 118.31 = .618 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 (current prices) or into the oversold area (25-40 pips below the current prices).

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