GBP/JPY has been trading in a very narrow range between 139.26 - 139.53. It is likely gathering energy for a break below short-term important support at 138.68. If it happens, it confirms that a dip closer to our ideal corrective target at 135.67 is developing and the next impulsive rally towards 144.98 and much higher is expected.
Only a direct break above minor resistance at 140.74 will indicate that a new corrective low has been seen and the next impulsive rally is developing.
R3: 141.51
R2: 141.12
R1: 140.74
Pivot: 140.21
S1: 139.26
S2: 139.07
S3: 138.60
Trading recommendation:
We will buy GBP at 135.75 or upon a break above 140.74
