The rally in GBP/JPY from 135.35 is still not certain and we need a clear break above minor resistance at 137.18 to confirm that wave 2 has completed and wave 3 is developing. The short-term minor support in the 135.91 - 136.03 area will be able to protect the downside for a new challenge of the minor resistance at 137.18 and a break above here will call for a rally towards 138.34 as the next upside hurdle.
A break below 135.91 will be disappointing and shift the bias back towards the downside for a possible dip to 134.50 but the downside potential remains limited from here.
We are long GBP from 136.96 with our stop placed at 135.86
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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