GBP/JPY broke back below key-resistance at 136.66, which is a bit disappointing. It moved to a low of 135.74 to test the ascending support-line from the 133.11 low. This support-line should be able to protect the downside for the next push higher through resistance at 136.66 and 137.44 for a continuation higher to 138.61 and 144.08 as the next resistance level.
Only an unexpected break below the support-line and more importantly a break below support at 135.03 will invalidate our immediately bullish outlook. We think this is a low-risk possibility but it should be taken into account.
R3: 136.83
R2: 136.52
R1: 136.25
Pivot: 136.10
S1: 135.95
S2: 135.72
S3: 135.32
Trading recommendation:
We are long GBP from 135.27 and we will raise our stop to 135.65
