GBP/JPY remains locked below the short-term important resistance at 129.31. If the pair breaks this resistance, a long-term low at 126.52 looks quite possible.
Minor support at 127.70 is currently being tested and expected to withstand the pressure for a break above minor resistance at 128.67 and more importantly, a break above resistance at 129.31 that will confirm a bottom being in place for a rally towards 132.96 and higher.
Only below support at 126.82 will call for renewed downside pressure and a dip below 126.52.
R3: 129.65
R2: 129.23
R1: 128.51
Pivot: 127.94
S1: 127.44
S2: 127.05
S3: 126.82
Trading recommendation:
We are long GBP from 127.80 with our stop at 126.70
