GBP/JPY broke above resistance at 135.25 and more importantly above resistance at 135.90. It was a clear indication that a firm corrective low had been found at 133.77. In the short-term, we are looking for a break above minor resistance at 134.72 as a confirmation that the correction from 136.04 has completed and a new impulsive rally towards 137.37 and 138.67 is in motion on the way higher to 148.32.
R3: 136.04
R2: 135.41
R1: 134.75
Pivot: 134.60
S1: 134.00
S2: 133.77
S3: 133.23
Trading recommendation:
We are long GBP from 135.35 with our stop placed at 133.70
