GBP/JPY has extended its correction in red wave iv/ to a low of 137.04. Despite the extension through our ideal target near 138.31 we still see the decline from 142.76 as corrective. Red wave iv will be completed near 136.93 and the take-off in red wave v/ to at least 143.88 and possibly even closer to 148.02 is likely to happen.
In the short-term, a break above minor resistance at 137.83 will indicate the completion of red wave iv/, while a break above resistance at 138.39 will confirm its completion and red wave v/ unfolding.
R3: 138.39
R2: 137.83
R1: 137.50
Pivot: 137.40
S1: 137.04
S2: 136.93
S3: 136.67
Trading recommendation:
We have bought GBP at 137.45 and we have placed our stop at 135.75
