GBP/JPY is still trading lower towards 140.80 and 139.24 as the next targets as long as short-term key resistance at 142.38 is able to cap the upside. An unexpected break above key resistance at 142.38 will indicate a premature bottom has been found for wave iv and wave v higher already is in motion for an ultimate break above the peak of wave iii at 147.94.
Our preferred count calls for a a break below minor support at 141.29 to add downside pressure towards 140.80 and 139.24.
R3: 142.38
R2: 142.11
R1: 141.96
Pivot: 141.86
S1: 141.68
S2: 141.50
S3: 141.29
Trading recommendation:
We are short GBP from 142.80 with our stop+revers at 142.50.
