GBP/JPY gained upside momentum and rallied higher to test key-resistance at 136.52. This resistance will likely be able to cap the upside temporary for a corrective set-back to 135.36 before the next push higher towards 138.31. In the long term, we are looking for a rally in wave iii/ to above the former peak at 142.02.
Support is now seen at 135.52 and then at 134.63, which ideally will protect the downside for renewed upside pressure.
R3: 137.15
R2: 136.52
R1: 135.80
Pivot: 135.36
S1: 134.90
S2: 134.63
S3: 134.32
Trading recommendation:
We are long GBP from 133.51 and we will move our stop higher to 133.80
