GBP/JPY is trading within impulse wave C of medium term downtrend (colored light green in the chart) from 122.71, and inside this wave there are three subwaves (colored magenta in the chart), and potential corrective subwave A that is developing against the downtrend from 118.20.
The resistances above are Fibonacci retracements of 120.14-118.20.
Resistances:
- 119.17 = .50 retracement
- 119.40 = .618 ret
- 119.72 = .786 ret
If the price resumes the downtrend the immediate supports will be Fibonacci expansions off 127.25-119.31-122.71, 122.71-118.94-120.14, 120.14-118.20-119.01.
Supports:
- 117.81-80 = confluence area of three contracted objective points (COP)
- 117.07 = objective point (OP)
Overbought/Oversold
The bigger wave is now moving down, so it's preferable to try short positions when the Detrended Oscillator gets above the zero level (10-15 pips above the current prices) or into the overbought area (25-35 pips above the current prices).
