GBP/JPY continues following the expected path higher in wave b. When the wave was completed just below our expected target-zone between 141.36 - 141.42 (the low was seen at 141.14), GBP/JPY moved higher. The corrective rally took over wave b. The ideal target for this b wave is seen at 145.36. From this point a new decline towards 139.82 should be seen in wave c of the zig-zag correction.
In a short-term perspective, we expect a minor corrective drop to 142.69 and even closer to 142.39. The next rally to 145.36 can complete wave b and set the stage for a new decline in wave c towards 139.82.
R3: 144.44
R2: 143.81
R1: 143.46
Pivot: 143.35
S1: 142.92
S2: 142.69
S3: 142.39
Trading recommendation:
We are long 50% GBP from 141.50 and we have placed our stop at the break-even level. And we will take profit and sell GBP at 145.20.
