GBP/JPY is developing impulse wave C of a mid-term downtrend from 129.32 (light green in the chart). Within this wave we have two subwaves (royal blue in the chart). Potential corrective subwave B is moving from 118.74. Within this wave we also have four subwaves (red in the chart); potential corrective subwave 4 is developing from 124.28.

The supports below are Fibonacci retracements of 119.69-124.28, 118.74-124.28.

Supports:

- 122.53 = .382 retracement
- 122.16 = .382 ret
- 121.99 = .50 ret
- 121.51-44 = .50 and .618 retracements
- 120.86 = .618 ret

However if the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 129.33-118.74, and expansions of 118.74-120.77-119.69.

- 125.00 = super expanded objective point (SXOP)
- 125.28 = .618 ret

Overbought/Oversold

The bigger wave is now moving up, so it is preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (current prices as well). Watch for opportunities to go long at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.