GBP/JPY remains firmly at short-term important resistance of 143.35 (the high was seen at 143.37). Why did the pair make a premature low in wave iv been seen at 140.80? We need more proof to conclude if this is the case and the proof of a break above 143.37. As long as this resistance is able to cap the upside, the outlook will remain bearish for a final push lower through support at 140.80 for a dip towards 139.24 and maybe even closer to 137.86 to complete wave iv.
If, however resistance at 143.37 gives away, then we must conclude that a premature bottom has been found for wave iv and wave v to above 147.95 is developing.
R3: 143.37
R2: 143.02
R1: 142.80
Pivot: 142.56
S1: 142.38
S2: 142.21
S3: 142.03
Trading recommendation:
Our stop at 143.35 was hit for a minor profit of 60 pips. We will re-sell GBP at 142.80 with a stop+revers at 143.40.
