GBP/JPY is developing corrective wave 4 (colored light green in the chart) of medium term uptrend from 127.25. Within this wave there are three subwaves (colored royal blue in the chart), and impulse subwave РЎ is still developing from 125.63. The targets below are Fibonacci retracements of 119.93-127.25, 116.91-127.25, and expansions off 127.25-123.85-125.63, 125.63-122.90-124.22.

Supports:

- 122.73 = .618 retracement
- 122.53 = contracted objective point (COP)
- 122.23 = objective point (OP)
- 122.08 = .50 ret
- 121.50-49 = confluence area of .618 ret and OP

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 125.63-122.90, 127.25-122.90.

Resistances:

- 124.27 = .50 ret
- 124.56-59 = confluence area of .382 and .618 retracements
- 125.05-08 = confluence area of .786 and .50 ret
- 125.59 = .618 ret

Overbought/Oversold

Assuming that the major wave is now down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (15-20 pips above the current prices) or into the overbought area (35-55 pips above the current prices).

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