Just with a casual glance at the GBP/JPY Daily chart below, you will immediately notice that I'm using Fibonacci Retracements to help me out. So, here we go...
Recent price action suggests that the GJ's rise from 118.78 has reached it's peak (for now) at 162.57. For the first time since February of 2009, GJ is convincingly BELOW the Monthly Pivot Point (now at 158.19). In fact, as I'm writing this, GJ is below even the Monthly S1 (at 153.82) and have past slightly below the 23.6% retracement level (at 152.23). In fact, it's testing the volatility pivot line (in yellow) which is at 151.75.
Should GJ be able to get past the latter, and supported by the fibs, the target for shorts shall conservatively be the 38.2% fib line at 145.84 and perhaps the Monthly S3 at 144.72.
For now, by looking at the GJ H4 chart, it is an obvious short below MoS1 (153.82) targeting MoS2 (149.09).
FYI, I've been scaling-in sell trades on GJ once it went below June 2009's MoR1 at 158.97. I have sufficient lots on this trade to make a tidy sum indeed. ;-)