GBP/JPY is now moving within impulse wave 5 of long term downtrend. Wave 5 started from 128.50 (colored light green in the chart). Within this wave there are A, B and potential C waves of smaller degree (colored red in the chart).
The targets of the downmove are Fibonacci expansions off 135.11-129.74-132.30, 132.30-124.87-128.50, 128.50-124.16-126.96.
Supports:
- 124.28 = contracted objective point (COP)
- 123.91 = COP
- 123.61 = expanded objective point (XOP)
If the price reverses up the immediate resistances will be Fibonacci retracements of 128.50-124.16, and expansions off 124.16-126.96-125.29.
Resistances:
- 126.84 = .618 retracement
- 127.02 = COP
- 128.09 = objective point (OP)
- 129.82 = XOP
Overbought/Oversold
Assuming that the medium term trend is now down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (50-75 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.