Elliott wave analysis of GBP/JPY for July 2, 2019

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There are signs that GBP/JPY will take off for a strong rally in the wave 3. On the other side, a possible impulsive pattern from 135.35 is not clear yet, which provides additional opportunities. It could also be a leading diagonal. If it is a leading diagonal, we may see a deeper correction closer to 136.25 before the next impulsive rally higher through the minor 137.79 peak towards 138.31 and above.

R3: 137.79

R2: 137.54

R1: 137.24

Pivot: 136.78

S1: 136.58

S2: 136.25

S3: 136.05

Trading recommendation:

We are long GBP from 137.25 with our stop placed at 136.50.

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