GBP/JPY saw a low at 134.38 well above 133.86 which is the key-levels indicating a more substantial correction in red wave c of red wave ii finally is developing towards 130.78.
As long as short-term key-support at 133.86 is able to protect the downside, we must allow for a re-test of the peak at 135.66. However, we think the upside should be limited from here.
A break below 133.86 will call for a decline to at least 132.00 and ideally closer to 130.78 to complete red wave ii.
R3: 136.09
R2: 135.83
R1: 135.66
Pivot: 135.13
S1: 134.70
S2: 134.38
S3: 133.86
Trading recommendation:
We are looking for a GBP-buying opportunity near 131.15
