GBP/JPY has seen a nice rally from the 133.84 low and the break above minor resistance at 134.62 is the first good indication that wave 2 now is complete and wave 3 is developing.
Short-term, we are likely to see a minor corrective set-back to support near 134.52 and maybe even closer to 135.28 before the next strong push higher towards important resistance at 136.02 a break above here, will confirm the corrective decline being finished and a new impulsive rally unfolding.
R3: 136.28
R2: 136.02
R1: 135.28
Pivot: 135.05
S1: 134.64
S2: 134.28
S3: 133.87
Trading recommendation:
We are long GBP from 134.75 and we have placed our stop at 133.80.
