GBP/JPY continues to push higher having tested resistance at 140.06 (the high has been seen at 140.10). We see a clear loss of short-term upside momentum. It could indicate that a correction towards 135.71 soon will be seen. That said, we must remember that wave three is rising higher and correction tends to be short and often sub-normal. So, a continued push higher to 142.91 should not be a surprise.
A break below minor support at 137.49 will call for a dip to 135.71 before the next rally higher should be expected.
R3: 142.91
R2: 141.72
R1: 140.10
Pivot: 139.16
S1: 138.42
S2: 137.49
S3: 136.45
Trading recommendation:
We are long GBP from 131.25 with our stop placed at 135.25
