The GBP/JPY pair was able to reach the suggested technical target of the weekly report easily at 138.70, where 127.2% Fibonacci projection of CD leg of the harmonic exists. Some kind of exhaustion started to appear on indicators and that is very normal due to the sharp degree of the recently drawn uptrend but the bullishness remains intact. We are looking forwards to see the pair resuming its upside trip towards 161.8% of CD leg at 143.20 but we should observe the price behaviors around the psychological level of 140.00.
The trading range for today is among key support at 135.50 and key resistance at 143.30.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support138.70137.80136.80135.50135.00Resistance139.75140.40141.50142.60143.30RecommendationBased on the charts and explanations above our opinion is, buying the pair around 138.70 targeting 141.50 and stop loss below 136.75 might be appropriate.