GBP/JPY broke below short-term important support at 144.84, which eliminated the possibility of the decline from 148.57 being red wave iv. The last bullish scenario is the current scenario. It suggests a decline from 148.57 as red wave ii in a much more bullish count, that sees a series of waves one's and two's.

The scenario remains valid until a break below 141.00 is seen, but ideally we have seen the low, at the 61.8% corrective target of red wave i at 143.94. Should a break below this support be seen, then the 78.6% corrective target at 142.68 will come into play, but this should only be a possibility as long as resistance at 144.73 is able to cap the upside.

A break above 144.73 will indicate a low is in place for a rally higher to 147.49 and above.

R3: 145.09

R2: 144.73

R1: 144.44

Pivot: 143.95

S1: 143.69

S2: 143.09

S3: 142.45

Trading recommendation:

We will buy a break above 144.73 and place our stop at 143.60.