GBP/JPY is heading towards key-resistance at 136.35. This resistance is expected to ultimately give way for a continuation towards the former peak at 139.74. Resistance will be seen at 137.30.
In the short-term, we expect support at 135.01 and more importantly support at 134.55 to be able to protect the downside for the next push higher to 136.35 and 137.30.
R3: 137.30
R2: 136.07
R1: 135.71
Pivot: 135.40
S1: 135.01
S2: 134.70
S3: 134.55
Trading recommendation:
We are long GBP/JPY from 132.85 and we will raise our stop to 134.40