GBP/JPY still needs to break below minor support at 133.85 to confirm that red wave c of red wave ii is developing towards the ideal target 130.78. As long as minor support at 133.85 is able to protect the downside a minor new high above 135.66 is possible, but the loss of upside momentum, makes this outcome more and more unlikely.
That said, we need to take into account, the possibility that GBP/JPY trades sideways for a couple of days within the 133.85 - 135.66 and the take off again towards 137.40 and above. As GBP/JPY has displayed more strength than first anticipated, this is an option we can not disregard.
R3: 135.66
R2: 135.10
R1: 134.89
Pivot: 134.42
S1: 133.85
S2: 133.33
S3: 132.72
Trading recommendation:
We are looking for a possible buying opportunity near 131.15
The material has been provided by InstaForex Company - www.instaforex.com