We continue to look for a clear signal that GBP/JPY has bottomed in red wave iv/ and red wave v/ to above 142.72 finally is in motion. A break above resistance at 136.59 will be that signal.
In the short-term, we think that minor support near 134.37 will be able to protect the downside for a new test of short-term key-resistance at 136.59 and a break above here will confirm red wave /4 having completed and red wave v taking off.
R3: 136.59
R2: 136.10
R1: 135.58
Pivot: 135.35
S1: 135.09
S2: 134.78
S3: 134.56
Trading recommendation:
We will buy GBP upon a break above minor resistance at 135.35 and place our stop at 134.50
