GBP/JPY has disappointed by breaking back below support at 134.68 and more importantly below support at 134.22. This break has reopened the downside for a dip to a new low near 133.53 before wave 2 can be considered complete.
Short-term minor resistance is seen at 134.70 and again at 135.16, which is expected to cap the upside for more downside pressure towards 133.53.
Only a direct break above the peak at 135.65 will shift the bias to a positive view.
R3: 135.65
R2: 135.16
R1: 134.70
Pivot: 134.38
S1: 134.10
S2: 133.82
S3: 133.53
Trading recommendation:
We took a small loss of 20 pips as out stop at 134.65 was hit. We will re-buy GBP at 133.65 or upon a break above 135.65
