GBP/JPY is expected to reach our target at 130.78 before turning higher but we are starting to see a real loss of downside momentum. The low ,for now, has been 131.20 and a final dip closer to our ideal target remains a possibility as long as minor resistance at 132.05 is able to cap the upside.
A break above resistance at 132.05 will be the first warning that a bottom already could be in place and red wave iii higher to 139.15 is developing. A break above 132.55 will confirm that the low and the new impulsive rally are unfolding.
R3: 133.36
R2: 132.85
R1: 132.55
Pivot: 132.05
S1: 131.47
S2: 131.20
S3: 130.78
Trading recommendation:
We bought GBP at 131.25 and we have placed our stop at 130.25
