GBP/JPY is developing impulse wave РЎ (colored royal blue in the chart) of medium term downtrend from 126.55. Within this wave there are A, B and C subwaves (colored magenta in the chart) with subwave C still developing from 124.76.
The targets of the downmove are Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-124.11-124.76, 124.76-123.50-123.99
Supports:
- 123.25-21 = confluence area of two contracted objective points (COP)
- 122.73-65 = confluence area of objective point (OP) and COP
- 122.32 = OP
- 121.95 = confluence area of two expanded objective points (XOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 124.76 - this wave is not developed so no resistances are available so far.
Overbought/Oversold
Assuming that the major wave is 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 (35-45 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.