We have seen the expected dip closer to 139.58 that completed red wave e and red wave iv for the next impulsive rally higher to 144.58. The trigger and confirmation that red wave iv is complete is a break above minor resistance at 140.26 and more importantly a break above 140.48.
As long as minor resistance at 140.26 is able to cap the upside, GBP/JPY is likely to try to push closer to the 139.34 limit. This should be a firm floor for the next impulsive rally.
R3: 141.00
R2: 140.75
R1: 140.48
Pivot: 140.26
S1: 139.88
S2: 139.58
S3: 139.34
Trading recommendation:
We are long GBP from 140.12 with our stop placed at 138.75. If you are not long GBP yet, then buy a break above 140.26 and place your stop at 139.25
