GBP/JPY fell to a low of 128.39 just sky of our ideal target at 127.93. The following rally of the 128.39 low looks solid. However, firstly, it needs to break clearly above minor resistance at 130.23 to indicate a long-term low.

This also means, that as long as minor resistance at 130.23 is able to cap the upside, we still could see a second attempt to reach our ideal target at 127.93 before the long-term low is in place.

R3: 131.65

R2: 130.95

R1: 130.23

Pivot: 129.88

S1: 129.25

S2: 128.87

S3: 128.49

Trading recommendation:

We will buy GBP at 128.05 or upon a break above 130.23