After testing the 164.00 resistance area, GBP/JPY dropped heavily breaking previously established the support level of 161. The Fibonacci applied to the first corrective wave after the breakout shows that the price has not tested the 161.8% retracement, which eventually should be tested.
The Fibonacci channel clearly shows that the price is not able to pass over the 161.8% retracement trendline and today, after the second bounce, the price started to fall sharply.
Consider selling GBP/JPY on small pullbacks towards R1 (161.40) targeting S3 (159.00) support area. The stop loss should be slightly above R1.
Support:160.45, 159.35, 159.00