GBP/JPY has stalled at the 50% corrective target of the decline from 135.45 to 130.63. It is likely to complete red wave i and a break below minor support at 131.85. It may indicate the onset of red wave iii/ towards at least 125.41 and possibly even closer to the 123.99 bottom. Ultimately we expect the 123.99 to be broken shortly to complete the long-term decline from 147.95. Once it is completed, a new impulsive rally is expected. Presently, we will be looking for a break below minor support at 131.85 to confirm the next downside pressure.
R3: 133.59
R2: 133.20
R1: 132.47
Pivot: 131.85
S1: 131.52
S2: 131.63
S3: 129.81
Trading recommendation:
We sold GBP at 132.07 and has placed our stop at 133.25
