GBP/JPY continues to follow the expected path. We are currently in wave b of a zig-zag correction. We know the corrective formation must be a zig-zag as the decline from 147.96 to 141.14 (wave a) was in five waves. The current contra rally is wave b and it will ideally stall at the 61.8% corrective target of wave a at 145.36 before turning lower in wave c towards 139.82 to complete the zig-zag correction in black wave iv.
At this point only a break below 142.41 will indicate a premature conclusion of wave b and the onset of wave c lower towards 139.82.
R3: 145.36
R2: 144.94
R1: 144.40
Pivot: 144.19
S1: 143.65
S2: 143.38
S3: 143.28
Trading recommendation:
We are long 50% GBP from 141.50 and we will raise our stop and sell GBP to 142.35 and we will take profit + sell GBP at 145.20
The material has been provided by InstaForex Company - www.instaforex.com