GBP/JPY continues to move lower and the clear break below 127.93 has extended the decline closer to the 126.19 - 126.31 area and maybe even closer to 125.48 before a firm low is in place. The first strong indication of a bottom being in place is a break back above minor resistance at 128.32 while a break above resistance at 130.06 will confirm the low being in place and a new impulsive rally building.
For now look for a bottom to form in the 126.19 - 126.31 area for a possible new rally.
R3: 128.32
R2: 127.73
R1: 127.30
Pivot: 127.04
S1: 126.52
S2: 126.31
S3: 126.19
Trading recommendation
We will buy GBP at 126.40 with our stop at 126.00 or upon a break above 127.87
