GBP/JPY continue to trade sideways in a very narrow range between 138.83 to 140.52. We are waiting for a final dip to at least 137.74 and maybe even closer to our ideal corrective target at 135.67 before the next impulsive rally higher to 144.98 and above.
The pair is likely to start an uptrend. Therefore, the correction during this part of an impulsive rally often is sub-normal. If it comes true, we should see a direct break above minor resistance at 140.74 for the next rally higher to 144.98 and above.
R3: 141.51
R2: 141.12
R1: 140.74
Pivot: 140.21
S1: 139.74
S2: 139.26
S3: 139.07
Trading recommendation:
We will buy 50% at 135.75 and 50% at 137.85 or we will buy 100% GBP upon a break above 140.74
