GBP/JPY is developing corrective wave B of medium term uptrend from 127.04 (royal blue in the chart). Within this wave we have three subwaves (magenta in the chart), and potential impulse subwave C is developing from 130.71. Within it there are three subwaves (red in the chart), and potential impulse subwave C is developing from 130.39.

The targets below are Fibonacci retracements of 127.04-131.75, and expansions off 131.75-129.02-130.71, 130.71-129.42-130.39.

Supports:

- 129.59 = contracted objective point (COP)
- 129.10 = objective point (OP)
- 129.02 = COP
- 128.84 = .618 retracement

The targets above the current price are Fibonacci expansions off 127.04-131.75-129.02, 129.02-130.71-129.42.

Resistances:

- 130.46 = COP
- 131.11 = OP
- 131.93 = COP
- 132.15 = expanded objective point (XOP)

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 (30-45 pips above the current prices). Watch for opportunities to go short at or near the indicated supports.

Read more on how to trade with Fibonacci levels.