Elliott wave analysis of GBP/JPY for July 16 - 2019

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GBP/JPY has made a new low for the corrective decline from 148.87. The ideal target for the ongoing correction in wave 2 is seen at 134.50 which we expect will be tested shortly. Once this target has been tested or on a break above minor resistance at 135.50, a new impulsive rally in wave 3 is expected.

A break above minor resistance at 135.50 will be the first strong indication that wave 2 has completed and wave 3 is moving higher, while a break above resistance at 136.03 will confirm that wave 3 is unfolding.

R3: 136.03

R2: 135.80

R1: 135.50

Pivot: 135.25

S1: 134.92

S2: 134.75

S3: 134.50

Trading recommendation:

Our stop at 135.00 was hit. We will re-buy GBP at 134.75 or upon a break above 135.50.

The material has been provided by InstaForex Company - www.instaforex.com