GBP/JPY failed to build on its temporary breakout above resistance at 140.51 which is disappointing. The breakout below support at 139.63 indicates the renewed downside pressure and a possible decline to the 61.8% corrective target at 137.53 before the wave 2 finally completes.
At this point, only a direct breakout above minor resistance at 140.32 will indicate the wave 2 being complete, while a breakout above resistance at 141.13 will confirm that the wave 3 is taking over for a rally towards 151.50.
R3: 141.48
R2: 140.77
R1: 140.32
Pivot: 140.00
S1: 139.29
S2: 138.90
S3: 138.25
Trading recommendation:
Our stop at 139.60 has been hit for a 20 pip loss. We will look for a new buying opportunity at 137.75 or upon a breakout above 140.32
