GBP/JPY is following the expected path lower towards the next corrective target at 134.52, where we expect the corrective decline in wave 2 from 148.87 will complete and start a new impulsive rally in wave 3 that ultimate will break back above 148.87.
Short-term resistance is now seen at 136.59, which is expected to cap the upside for the decline towards 134.52 but only a break above resistance at 136.94 will indicate that wave 2 is complete and wave 3 higher is developing.
R3: 137.35
R2: 136.94
R1: 136.56
Pivot: 136.08
S1: 135.85
S2: 135.45
S3: 135.00
Trading recommendation:
We will buy GBP at 134.65 or upon a break above 136.94
