GBP/JPY is moving within wave C of long term downtrend - colored light green in the chart. And within this wave there are A, B and C subwaves, with subwave C still developing from 130.51 - colored magenta in the chart. Within this subwave there are A, B and C waves of still smaller degree. The targets of the downmove are Fibonacci expansions off 139.93-130.26-135.11, 135.11-129.74-132.30, 132.30-128.90-130.51, and 130.51-128.45-129.03.
Supports:
- 127.76 = contracted objective point (COP)
- 127.11 = objective point (OP)
- 126.97-93 = conflence area of two objective points (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 130.51-128.19.
Resistances:
- 129.08 = .382 retracement
- 129.53 = .50 ret
- 129.62 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (15-25 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.