A dip to 134.35 is most likely to take place. GBP/JPY may break higher through minor resistance at 135.02 for a more firm test of short-term important resistance at 136.02. This resistance needs to be broken to confirm a long-term bottom is in place with the test of 133.90.
Short-term support is seen in the 134.27 - 134.35 area and is expected to protect the downside for a break above 135.02. Thus, only an unexpected break below 133.90 will confirm that wave 2 is still developing but the potential downside is likely to be very limited.
R3: 136.28
R2: 136.02
R1: 135.28
Pivot: 135.02
S1: 134.77
S2: 134.57
S3: 134.35
Trading recommendation:
We are long GBP from 134.85
