The GBP/JPY pair has recovered from 136.63. Now it is testing important resistance at 137.48. If this resistance is broken too, then we see wave 2 as complete and wave 3 developing for an ultimate break above the March peak at 148.87.
Support is seen near 136.97 which ideally will protect the downside if wave 2 is complete for a clear break above 137.48. A failure to protect the downside near 136.97 will call for a final dip closer to the 70.7% corrective target at 135.94, but this correction is running out of steam.
R3: 138.36
R2: 137.96
R1: 137.48
Pivot: 137.15
S1: 136.97
S2: 136.53
S3: 136.25
Trading recommendation:
We will buy GBP at 136.15 or upon a break above 137.48
