GBP/JPY has made a new low at 135.05 and we continue to look for a little more downside pressure towards 134.50 to complete wave 2 and set the stage for a new impulsive rally in wave 3.
At this point only a break above minor resistance at 135.74 and more importantly a break above resistance at 136.06 will confirm that wave 2 has completed and wave 3 is developing for a rally to and above 137.79.
R3: 136.26
R2: 136.06
R1: 135.74
Pivot: 135.44
S1: 135.05
S2: 134.75
S3: 134.50
Trading recommendation:
We will buy GBP at 134.65 or upon a break above 135.74
