GBP/JPY broke directly above short-term important resistance at 130.70 adding confidence in our preferred count, indicating a firm bottom being in place at 126.54 and a new impulsive rally in progress.
We thing that red wave i has just completed 132.16 and a minor correction in red wave ii towards 129.41 and maybe even closer to 128.75 is about to develop. On this minor correction in red wave ii is complete and new impulsive rally towards 135.40 is expected.
R3: 133.02
R2: 132.55
R1: 132.16
Pivot 131.60
S1: 131.31
S2: 130.94
S3: 130.49
Trading recommendation:
We will take profit on our final 50% long GBP position here at 131.85 and re-buy GBP near 129.50
