GBP/JPY has rallied as we expected and has tested our 139.15 target (the high has been seen at 139.32). Some minor drops may occur. However, another run higher towards 140.06 and maybe even closer to 142.91 (less likely thus) is expected before a minor peak and correction close to 135.67 looks likely.

In the short-term, we see support near 138.00 for the expected rally higher to 140.06. Only a direct break below 137.03 will indicate that the correction to 135.67 is already unfolding.

R3: 141.72

R2: 140.76

R3: 139.81

Pivot: 139.32

S1: 137.96

S2: 137.05

S3: 136.42

Trading recommendation:

We are waiting for GBP from 131.25 and we will move our stop higher to 135.25