GBP/JPY is testing short-term important resistance at 135.98. A break above here will confirm that wave 2 completed with the test of 135.05 and a new impulsive rally is ready to take off towards 137.79 and above.
Support is now seen at 135.65 and again at 135.44 but only a break back below 135.05 will re-open the downside for a final dip closer to 134.50 to complete wave 2.
R3: 136.78
R2: 136.22
R1: 135.98
Pivot: 135.65
S1: 135.44
S2: 135.20
S3: 135.05
Trading recommendation:
We bought GBP at 135.75 and we have placed our stop at 135.00.
