After a very small red wave iv/ correction to 135.93, GBP/JPY is heading towards the ideal target for red wave v/ and iii at 139.07. Once red wave v/ and iii is completed, we can expect another minor correction in red wave iv close to support at 135.93 before the final rally higher in red wave v.

However, for now, the pair is likely to test 139.07. Support is seen at 137.16.

R3: 139.07

R2: 138.58

R1: 137.80

Pivot: 137.16

S1: 136.89

S2: 136.32

S3: 135.93

Trading recommendation:

We are long GBP from 131.95 and we will move our stop higher to 135.05