GBP/JPY has completed red iii/ and we should now see a short-term correction in red wave iv/ towards the 135.10 - 135.30 area before red wave v/ takes over to complete red wave iii near 139.07.
As red wave ii/ was a complex sideways correction, we should look for a simple zig-zag correction in red wave iv/.
We also need to be ready that wave three may climb higher and extend further than expected.
R3: 138.58
R2: 137.52
R1: 136.95
Pivot: 136.25
S1: 135.85
S2: 135.50
S3: 135.10
Trading recommendation:
We are long GBP from 131.95 with our stop placed at 133.50.
