The GBP/JPY pair succeeded in reaching the awaited reversal level of 134.25, where it formed a clear negative divergence on Stochastic as seen on the provided daily chart. According to our suggested Elliott count of the short term basis, the forth wave might have been completed and the fifth is about to start soon. Therefore bearish movements could be seen over intraday basis.
The trading range for the week is among key support at 129.70 and key resistance at 138.60.
The general trend is to the downside as far as 167.40 remains intact with target at116.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair with a breakout below 133.70 targeting 131.50 and stop loss above 135.15 might be appropriate.|