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.
We are long GBP from 136.96 with our stop placed at 135.96
The material has been provided by InstaForex Company – www.instaforex.com