GBP/JPY finally started its next impulsive decline which we expect to dip below 123.99. That said, we still need that break with short-term key-support at 131.88. Until this support breaks the possibility of a re-test of 133.68 remains.
We do prefer the bearish option and expect minor resistance at 133.04 to keep the correction from 131.88 at bay and soon set the stage for a new test of key-support at 131.88. A break below here will confirm that the next impulsive decline is in motion to 123.99.
R3: 134.09
R2: 133.68
R1: 133.04
Pivot: 132.55
S1: 131.88
S2: 131.34
S3: 130.63
Trading recommendation:
We sold GBP at 134.35 and have a stop at 135.00. Upon a break below 131.88 we will lower our stop to 134.00
