There was no time for a corrective decline to 132.78 before the next raly higher. GBP/JPY rallied directly above resistance at 134.62 indicating, that a long-term bottom is in place. Now we would like to see a break above resistance at 137.74 as the next strong indication that a long-term low is in place.
Support is now seen at 136.35 and again at 135.66 where solid short-term support is spotted.
R3: 138.51
R2: 138.08
R1: 137.74
Pivot: 136.58
S1: 136.23
S2: 135.66
S3: 135.20
Trading recommendation:
We bought GBP at 134.65 and we will place our stop at 135.50.
