There are signs that GBP/JPY will take off for a strong rally in the wave 3. On the other side, a possible impulsive pattern from 135.35 is not clear yet, which provides additional opportunities. It could also be a leading diagonal. If it is a leading diagonal, we may see a deeper correction closer to 136.25 before the next impulsive rally higher through the minor 137.79 peak towards 138.31 and above.
R3: 137.79
R2: 137.54
R1: 137.24
Pivot: 136.78
S1: 136.58
S2: 136.25
S3: 136.05
Trading recommendation:
We are long GBP from 137.25 with our stop placed at 136.50.
