GBP/JPY has made a new corrective low for the decline from 148.87. This calls for even more downside pressure towards 134.52 before wave 2 is expected to complete. Only an unexpected rally past minor resistance at 137.77 will indicate that wave 2 has completed already and that wave 3 has taken over for a new impulsive rally, that ultimately will break back above the 148.87 peak.
R3: 138.24
R2: 137.77
R1: 137.43
Pivot: 136.94
S1: 136.38
S2: 135.85
S3: 135.45
Trading recommendation:
Our stop at 136.90 was hit for a 60 pip loss. We will only buy GBP at 134.65 or upon a break above 137.77