GBP/JPY made a new low at 128.57. It continues to decline in wave 2. The loss of downside momentum is now massive. It should be just a matter of time before minor resistance at 131.28 is broken indicating that wave 2 has completed and wave 3 is in motion.
To confirm that wave 3 is unfolding we need a break above resistance at 134.32. When this resistance is broken, we expect a quick rally to 137.01 or to 140.96. The pair could grow to 147.96.
R3: 132.28
R2: 131.28
R1: 130.27
Pivot: 129.36
S1: 128.57
S2: 128.10
S3: 127.69
Trading recommendation:
We bought GBP at 129.00 and we placed our stop at 128.00
