GBP/JPY broke strongly below 133.53 which has extended the downside pressure towards 131.98 and maybe even closer to 130.69. However, this break should be short lived as the decline from 148.87 now is very over-extended and a sudden turnaround could be seen anytime now.
The first indication of a bottom being in place will be a break above 133.31 while a break above 134.07 will confirm the bottom of wave 2 and call for more upside through 135.67 towards 137.79 and above.
R3: 133.31
R2: 132.85
R1: 132.54
Pivot: 132.14
S1: 131.98
S2: 131.50
S3: 130.69
Trading recommendation:
We are long GBP from 133.65.
