GBP/JPY has made a new low for the corrective decline from 148.87. The ideal target for the ongoing correction in wave 2 is seen at 134.50 which we expect will be tested shortly. Once this target has been tested or on a break above minor resistance at 135.50, a new impulsive rally in wave 3 is expected.
A break above minor resistance at 135.50 will be the first strong indication that wave 2 has completed and wave 3 is moving higher, while a break above resistance at 136.03 will confirm that wave 3 is unfolding.
R3: 136.03
R2: 135.80
R1: 135.50
Pivot: 135.25
S1: 134.92
S2: 134.75
S3: 134.50
Trading recommendation:
Our stop at 135.00 was hit. We will re-buy GBP at 134.75 or upon a break above 135.50.
The material has been provided by InstaForex Company - www.instaforex.com