GBP/JPY tested support at 137.83 but failed to develop another rally towards resistance at 139.21. Ultimately we expect this resistance to be broken for a continuation higher towards 140.35. This new spike higher at 140.35 should complete blue wave iii and set the stage for a sideways consolidation. The pair may dip to 137.92 before the next push higher towards 144.29 and ultimately a continuation higher to 148.32 occur.
Support is now seen at 138.33 and the next one is at the 137.83 level.
R3: 140.35
R2: 140.00
R1: 139.55
Pivot: 139.21
S1: 138.64
S2: 138.33
S3: 137.83
Trading recommendation:
We will take profit on 50% of our long GBP position at 140.25.
