GBP/JPY continues to display upside pressure. In the short-term, we expect another dip to 134.35 before the next upward movement towards 136.26 which needs to be broken to confirm that wave 2 has completed with the test of 133.90 and a new impulsive rally in wave 3 is developing.
Only an unexpected break back below 133.90 will confirm that wave 2 still is in motion, but the potential downside is likely to be limited.
R3: 136.28
R2: 136.02
R1: 135.28
Pivot: 135.05
S1: 134.64
S2: 134.65
S3: 133.90
Trading recommendation:
We are long GBP from 134.75
