GBP/JPY has fulfilled our target at 124.50, but is still able to push lower, but we are now seeing the first signs of weakness and a possible bottom being in place shortly. The first sign of a low for wave 2 is a break above minor resistance at 134.62 and more importantly a break above resistance at 135.26.
That said, we also have to acknowledge, that as long as minor resistance at 134.62 is able to cap the upside we could see GBP/JPY move slightly lower admit a limited downside potential.
R3: 135.82
R2: 135.26
R1: 134.62
Pivot: 134.28
S1: 133.84
S2: 133.62
S3: 133.45
Trading recommendation:
We are long GBP from 134.75