GBP/JPY rallied nicely from 134.37 which could be the low of red wave ii. If this is the case, then a new rally should see GBP/JPY break above the minor peak at 135.81 and more imortantly a bore resistance at 135.95 for a continuation higher as red wave iii gains upside momentum towards 137.67 and ultimately above the former peak at 142.72.
Short-term support remains seen at 134.87 and then at 134.37. Ideally, the latter will be able to protect the downside for the expected break above resistance in the 135.81 - 135.95 area.
R3: 136.35
R2: 135.81
R1: 135.40
Pivot: 135.20
S1: 134.87
S2: 134.37
S3: 134.10
Trading recommendation:
We are long GBP from 135.45 and we have placed our stop at 134.35