GBP/JPY keeps pushing lower towards the 70.7% corrective target seen at 135.94. We are looking for a low at this corrective target and the completion of the corrective decline in the wave 2 for a new impulsive rally in the wave 3 above 148.87.
The first solid evidence that wave 2 has completed is seen upon a breakout above minor resistance at 137.48, while a breakout above resistance at 138.74 is needed to confirm that the wave 3 is developing.
R3: 138.74
R2: 137.79
S1: 137.48
Pivot: 137.01
S1: 136.63
S2: 136.25
S3: 135.93
Trading recommendation:
We are looking for a GBP buying opportunity at 136.15 or upon a breakout above minor resistance at 137.48.
