GBP/JPY is likely to be at the final stages of a wave iv triangle. A break above minor resistance at 140.55 will trigger the next impulsive rally higher towards 144.58 and likely even higher.
We now see support at 139.65 and only a break below here, will buy the triangle construction some extra time, but still the triangle is almost complete and it should only be a matter of time before the next impulsive rally starts to develop.
R3: 140.74
R2: 140.55
R1: 140.12
Pivot: 139.65
S1: 139.27
S2: 138.87
S3: 138.56
Trading recommendation:
We bought GBP at 140.12 and we have placed our stop at 138.75
