GBP/JPY is hovering above key-support at 131.63 and the break above minor resistance at 133.25. This could indicate the completion of red wave ii at 131.68 for a new impulsive rally towards 138.04 and for a continuation towards 148.32.
Thus, we need more evidence before we are sure that the correction in red wave ii is completed. The first target is a break above resistance at 133.81 and more importantly a break above key-resistance at 136.35, but so far, the rally from 131.68 looks promising.
R3: 135.18
R2: 134.38
R1: 133.81
Pivot: 133.52
S1: 133.08
S2: 132.72
S3: 132.10
Trading recommendation:
We are long on GBP from 132.85 and our stop remains locked at 131.55
