We have finally seen the spike to just above the 134.72 high (the high has been seen at 134.86). This should be enough to turn GBP/JPY lower again. Short-term resistance at 132.70 confirms that wave iv has completed and wave v to below 123.99 is developing.

This is the final decline in the five wave from 147.91 and should also be the final wave in the long-term drop from 156.61 and once this wave is completed a new rally towards at least 156.61 should be expected.

R3: 135.48

R2: 135.00

R1: 134.86

Pivot: 134.35

S1: 133.66

S2: 133.10

S3: 132.70

Trading recommendation:

We are short GBP from 134.40 with our stop placed at 135.40