GBP/JPY has gabbed lower in Far East trading, which is disappointing and has invalidated our positive bias. The break below 136.24 indicates that the corrective decline from 148.87 has not completed yet and a final dip closer to 134.50 is needed to complete wave 2 and set the stage for wave 3 higher.
Resistance is seen at 135.81 and again at 136.43.
R3: 136.78
R2: 136.43
R1: 135.81
Pivot: 135.75
S1: 135.35
S2: 135.00
S3: 134.50
Trading recommendation:
Our stop at 136.50 was hit. We will only buy GBP at 134.65.
