GBP/JPY continues to lower in red wave c of red wave ii just as we expected. The ideal target for red wave c is near 130.78 from where the next impulsive rally in red wave iii should begin. That said, we will see solid support near 132.10, which could spark a short-term rally back to 133.51 before the next downside attempt should be expected. A break below the solid support at 132.10 will be very supportive of our expectation of a dip to our ideal target at 130.78.
Only a direct break above short-term key-resistance at 134.61 will indicate that the correction in red wave ii has completed prematurely and red wave iii higher to 139.20 already is unfolding.
R3: 134.61
R2: 134.05
R1: 133.51
Pivot: 132.82
S1: 132.10
S2: 131.45
S3: 130.78
Trading recommendation:
We are looking to buy GBP near 131.25 or upon a break above 134.61
