GBP/JPY continues to move higher in wave iv towards our ideal target set at 134.52. That said, we do see a clear loss of upside momentum, which could indicate difficulties reaching this target, but only a break below support at 131.00 will indicate that wave iv already has completed and wave v towards 123.04 is developing.

Once the 123.04 target has been reached a new impulsive rally will be expected.

R3: 134.52

R2: 134.00

R1: 133.45

Pivot: 132.59

S1: 132.10

S2: 131.00

S3: 129.81

Trading recommendation:

We continue to look for a GBP selling opportunity at 134.45 or upon a break below 131.00