GBP/JPY continues to trade in a very narrow range, indicating a possible minor triangle developing. If this is the case, we could see a final dip closer to 137.74 with an outside chance of a deeper corrective decline towards 135.67 before tuning higher again towards 144.98.
Only a direct break above minor resistance at 140.74 will indicate a premature low being in place and the rally higher towards 144.98 being in force.
R3: 141.15
R2: 141.12
R1: 140.74
Pivot: 140.21
S1: 139.74
S2: 139.26
S3: 139.07
Trading recommendation:
We will buy 50% GBP at 137.85 and 50% at 135.87 or we will buy 100% upon a break above 140.74
