GBP/JPY dipped to a low of 133.94. With this dip, the level 134.50 has been completed. So, we will be looking for signs that the pair is searching for a bottom. The first strong indication of a a corrective decline in wave 2 being complete will be a break above resistance at 135.26 while a break above resistance at 136.28 will confirm a new impulsive rally in wave 3 is unfolding.
However, as long as resistance at 135.26 is able to cap the upside, we must accept a final dip to just below the 133.94 low. However, the downside potential should be limited.
We bought GBP at 134.75
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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