GBP/JPY has pushed higher and all we need is a break above minor resistance at 138.31 to invalidate the option of a possible leading diagonal being in play. It also means that as long as minor resistance 138.31 caps the upside the leading diagonal option remains in play and if this is the correct option then a break below 136.77 will call for a corrective decline to at least 136.04 and likely closer to the 50% corrective target of the rally from 133.08 at 135.48 before higher again.
If however minor resistance at 138.31 is broken the leading diagonal option is invalidated and more upside pressure towards 147.72 and ultimately above should be expected.
R3: 139.00
R2: 138.40
R1: 137.82
Pivot: 137.37
S1: 136.77
S2: 136.04
S3: 135.48
Trading recommendation:
We are long GBP from 135.27 and we will close 50% of our position upon a break below 136.70 and we will re-buy GBP at 136.20.
