GBP/JPY is developing wave C of medium term downtrend from 128.87 (colored red in the chart). Within this wave there are four subwaves with subwave 4 from 123.27 still developing (colored orange red in the chart). The targets of the upmove are Fibonacci retracements of 130.81-123.23, 128.87-123.27, 127.01-123.27, and expansions off 123.27-124.75-123.36.

Resistances:

- 125.14 = .50 retracement
- 125.41 = .382 ret
- 125.58 = .618 ret
- 125.75 = expanded objective point (XOP)
- 126.07-15 = .50 and .382 retracements
- 126.73 = .618 ret
- 127.04 = .50 ret
- 127.93 = .618 ret

If the price reverses to the downside the targets of the downmove will be Fibonacci expansions off 130.81-127.38-128.87, 128.87-125-36-127.01.

Supports:

- 121.33 = expanded objective point (XOP)
- 119.89 = super expanded objective point (SXOP)

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 (20-25 pips above the current prices) or into the overbought area (60-80 pips above the current prices).

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