We have already seen the expected corrective decline to 142.39. GBP/JPY should be ready to challenge the upside again. We expect a rally above 143.43 that will confirm a continuation of the upside movement to 145.36 in order to complete wave b on the ongoing a-b-c correction. The correction is expected to be completed near 139.82.
In a short-term perspective, a break above minor resistance at 142.89 will indicate that the minor correction is completed and the final leg of wave b towards 145.36 is unfolding.
R3. 143.64
R2: 143.39
R1: 143.19
Pivot: 142.89
S1: 142.58
S2: 142.39
S3: 142.09
Trading recommendation:
We are long 50% GBP from 141.50 with our stop set at break-even. We will place take profit while opening a sell position on GBP at 145.20.
