• GBPJPY falling inside minor impulse wave 5
• Further losses likely toward 126.50

GBPJPY has been falling in the last few weeks inside the weekly minor impulse wave 5, which started previously from the key resistance level 130.45 (former multi-month support which stopped the sharp downward impulse wave (1) at the end of October).The active impulse wave 5 belongs to the extended downward impulse sequence (3) from March. With the strengthening bearish GBP sentiment and rising JPY bullishness, GBPJPY is expected to fall further and re-test the next support level 126.50 (low of the previous sharp impulse wave 3 from the middle of August).
If the pair breaks below 126.50 – GBPJPY is then likely to extend the losses toward the next major support level 124.00 (former multi-year support from 2016).