GBPJPY had raised through 139.00 levels recently, before pulling back below 138.00 levels. The currency might be wanting to test resistance around 139.75, before producing a meaningful resistance. Looking bearish below 139.75 levels, going forward.
GBPJPY probable wave counts are as follows: The currency had earlier dropped from 148.00 through 124.00 levels respectively. The drop was retraced up to fibonacci 0.618 levels around 139.75 in early June 2020. The peak is seen on the chart presented here.
Ideally, GBPJPY should stay below 139.75 highs and reverse lower towards 124.00 and beyond in the coming weeks. Looking into the lower degree wave counts since 139.75, the currency had dropped through 132.00 mark sub dividing into 5 waves.
The drop has been marked as potential Wave (1). Ideally, a 5 wave drop should be followed by a 3 wave corrective rally. GBPJPY has produced a corrective wave between 132.00 and 139.00 levels respectively, marked as potential Wave (2).
If the above counts hold true, GBPJPY would stay below 139.75 levels going forward, and push below 132.00 over the next several weeks. Alternately, if GBPJPY breaks above 139.75, the next resistance is seen towards 141.00/142.00 respectively.
Traders might be inclined to remain short for now with a protective stop above 139.75 levels. The projected target could be seen below 132.00 and a break below 137.00 interim lows, would accelerate the drop further lower.
Technical Analysis Team
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