GBP/JPY challenged short-term important resistance at 137.13 and failed to break clear above that keeps us in a dead-lock for now. It is more favorable that wave 2 has completed with the test of 135.35. At the moment, wave 3 now is developing for an ultimate break above the 148.87 peak.
We need a clear break higher that we still have not seen. This failure to break higher keep a door open for a final spike below 135.35 for a move closer to 134.50 to complete wave 2 and set the stage for the next impulsive rally in wave 3.
So ,for now, we will just have to stay patient and see whether a final spike lower is needed or the next impulsive rally already is in motion.
R3: 138.26
R2: 137.79
R1: 137.44
Pivot: 136.65
S1: 136.44
S2: 136.23
S3: 135.95
Trading recommendation:
We will buy GBP at 134.65 or upon a clear break above 137.13
The material has been provided by InstaForex Company - www.instaforex.com