GBP/JPY is in the final stage of red wave v and black wave iii. Red wave v will make a final pop to 144.55 to complete red wave v and black wave iii before starting a more long-term correction in black wave iv. As black wave ii was a simple zig-zag correction, we should expect a more complex correction in black wave iv. It can be either some kind of flat correction or a triangle. Because of the expected complex nature of the correction in wave iv, it is not a good strategy to sell if the 144.55 target is hit.
Support is seen at 141.70 which is expected to protect the downside for the final pop higher.
R3: 144.55
R2: 143.87
R1: 143.25
Pivot: 142.77
S1: 142.44
S2: 142.16
S3: 141.70
Trading recommendation:
We are long GBP from 140.12 with our stop placed at 141.55. Upon a break above 143.25 we will move our stop higher to 142.25 and we will take profit at 144.45
