GBP/JPY has already tested the top of red wave iii at 141.50 and have seen a minor corrective set-back to to the former triangle resistance-line. This former resistance-line is now acting as support and will ideally protect the downside for the next push higher towards 143.82 in blue wave iii. After a minor sideways consolidation in blue wave iv we should see the final rally towards the ideal target at 144.58 to complete blue and red wave v and black wave iii. From the high of 144.58 a larger and more prolonged correction is expected.
We are long GBP from 140.12 with our stop placed at 139.30. If you are not long GBP yet, then buy near 140.48 or upon a break above 140.88 and use the same stop at 139.30.
The material has been provided by InstaForex Company – www.instaforex.com