The extension of the Brexit deal to October 30 has given GBP a lift. We were looking for renewed GBP strength, but this extension should give GBP/JPY an extra push towards the upside.
We are looking for a clear break above minor resistance at 146.05 to confirm a corrective low is in place near 144.90 and renewed upside strength should push GBP/JPY towards 147.00 and 148.50 near term.
Support remains seen in the 144.90 -145.10 area.
R3: 147.00
R2: 146.50
R1: 146.00
Pivot: 145.55
S1: 145.00
S2: 144.62
S3: 144.15
Trading recommendation:
We are long GBP from 146.51 with our stop placed at 144.80
