GBP/JPY is developing impulse wave C of medium term downtrend from 129.32 (light green in the chart). Within this wave we have three subwaves (magenta in the chart), and impulse subwave C is developing from 126.39. Within this wave we also have three subwaves (red in the chart).

Now the targets below are Fibonacci expansions off 131.75-127.76-129.33, 129.33-124.59-126.39, 126.39-124.08-125.03.

Supports:

- 123.60 = contracted objective point (COP)
- 123.46 = COP
- 122.86 = expanded objective point (XOP)
- 122.72 = objective point (OP)

If the price keeps moving up, the immediate resistances will be Fibonacci retracements of 126.39-124.08, and 129.33-124.08.

Resistances:

- 125.24 = .50 retracement
- 125.51 = .618 ret
- 126.09 = .382 ret
- 126.71 = .50 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 (current prices) or into the overbought area (10-25 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.