GBP/JPY is now developing impulse wave A of medium term downtrend (royal blue in the chart), until the price breaks above 130.04. Within this wave we have subwaves A, and B (magenta in the chart) that is developing from 126.48. Within the latter we have five subwaves (yellow in the chart), and subwave 5 is still developing from 128.31.

The targets of the upmove are Fibonacci expansions off 126.84-129.13-128.31.

Resistances:

- 129.73 = contracted objective point (COP)
- 130.60 = objective point (OP)

But if the price reverses to the downside the immediate supports will be Fibonacci retracements of 126.48-129.51.

Supports:

- 128.35 = .382 retracement
- 128.00 = .50 ret
- 127.64 = .618 ret

Overbought/Oversold

The bigger wave is now moving down, so it's preferable to try short positions when the Detrended Oscillator goes above the zero level (15-20 pips above the current prices) or into the overbought area (50-65 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.