After testing a low of 135.43 GBP/JPY has been testing short-term important resistance at 136.92 multiple times indicating a weakening decline and possible bottom for wave 2. We have now seen a more substantial break above 136.92 and look for a firm break above 137.18 too. A break above this resistance will be a strong indication that wave 2 now is complete and wave 3 to above 148.87 now is developing.
Support is now seen at 136.01 which should be able to protect the downside for the break above 137.18.
R3: 137.79
R2: 137.53
R1: 137.18
Pivot: 136.85
S1: 136.47
S2: 136.16
S3: 136.01
Trading recommendation:
We are long GBP from 136.96 with our stop placed at 135.96