GBP/JPY has cleared short-term important resistance at 137.33 indicating that wave 2 completed with the 135.35. Now wave 3 is in motion for a new impulsive rally that ultimately should break above the 148.87 peak.

Short-term support is now seen at 137.20 with important support seen at 136.24. This later support must protect the downside or our bullish view will be frustrated.

R3: 138.50

R2: 138.27

R1: 137.80

Pivot: 137.52

S1: 137.20

S2: 136.76

S3: 136.26

Trading recommendation:

We are long GBP from 137.25 and we have placed our stop at 136.50.