GBPJPY might have finally topped just above 140.00 mark as discussed earlier. The currency had reversed sharply lower yesterday from 140.00 levels and is trading below 139.00 as we prepare the update for today. Looking lower from here.
GBPJPY probable wave counts are as follows: The earlier drop between 148.00 and 124.00 was corrective (3 waves), not seen on the chart here. Also note that subsequent rally since 124.00 lows through 140.20/30 highs also seems corrective A-B-C.
Probabilities remain high for another corrective drop lower towards 128.00 and 126.00 levels, going forward. Also note that above structure might be a part of a diagonal at a larger degree. In that case, we might witness a drop below 124.00 levels.
Alternately, GBPJPY might continue rallying towards 143.00 and higher levels from here. This would confirm a potential bottom in place at 124.00 and that the trend might have turned higher. A break above 148.00 would ascertain that trend has turned higher.
Immediate support is seen towards 138.00, followed by 135.00 and lower, while resistance is seen above 143.00 levels respectively. A break below 135.00 would indicate further downside towards 128.00 and 126.00 respectively.
Traders might be willing to hold short positions from sub 140.00 levels with a protective stop above 142.50 and projected target towards 135.00 and 128.00 respctively.
Technical Analysis Team
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