GBP/JPY dipped just below our target zone between 135.78 - 136.04 (the low was seen at 135.66) before GBP/JPY rallied strongly through minor resistance at 136.54 to confirm the completion of red wave ii and the onset of red wave iii towards 143.93.
Short-term, we could see a re-test of the former resistance at 136.54 now acting as support before the next push higher towards 137.87 and 138.31 as the next minor hurdles to overcome.
R3: 137.77
R2: 137.38
R1: 137.15
Pivot: 136.89
S1: 136.76
S2: 136.54
S3: 136.35
Trading recommendation:
We are long GBP from 135.71 and we will move our stop up from 135.00 to 135.60.
