Elliott wave analysis of GBP/JPY for March 20 - 2020

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GBP/JPY found support at the channel support-line at 123.71. It is likely to enter the correction phase in the coming days to 132.05 and maybe even closer to 134.52 (the 50% corrective target of wave iii) before wave iv completes and the final decline in wave v close to 123.02 unfolds. This should complete the decline in wave 2 or B and set-up the possibility for a huge rally in the weeks months ahead.

The financial markets remain uncertain due to the corona pandemic and the financial havoc it can bring. At this point we don't know how many will be unemployed, the number of possible bankruptcies and a possible recession and pandemic will continue to weigh on the financial markets.

R3: 131.15

R2: 130.64

R1: 129.54

Pivot: 128.61

S1: 127.74

S2: 126.87

S3: 125.90

Trading recommendation:

We will stand on the sideline

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