GBP/JPY has seen a second dip to just below our ideal target at 131.12 (the low has been seen at 130.96). To indicate a bottom is in place, we now need a break above minor resistance at 133.04 and more importantly a break above resistance at 134.32 that will confirm wave 2/ has completed and wave 3 is in motion.
Until a break above resistance at 134.32 has been seen, we must accept that the trend remains down, but the loss of downside momentum indicates a bottom should be in place very soon.
R3: 134.32
R2: 133.04
R1: 132.12
Pivot: 130.96
S1: 130.40
S2: 129.91
S3: 129.14
Trading recommendation:
We are long GBP from 131.20 with our stop placed at 130.95. If our stop is hit, we will rebuy GBP upon a break above 133.04
