GBP/JPY continues to move closer to the 61.8% corrective target at 137.53 which is expected to make a low for the wave 2 and set the stage for the next impulsive rally in the wave 3 to above the peak of March 14 at 148.87.
At this point, a direct breakout above minor resistance at 140.00 and, more importantly, a breakout above 141.74 will confirm that the wave 2 has completed and the wave 3 is developing.
R3: 140.44
R2: 140.00
R1: 139.29
Pivot: 138.92
S1: 138.52
S2: 138.00
S3: 137.52
Trading recommendation:
We will buy GBP at 137.75 or upon a breakout above 140.00.
