Elliott wave analysis of GBP/JPY for April 23 - 2020

analytics5ea11ba2097e4.jpg

GBP/JPY is in a place where it could accelerate lower anytime now. We are looking for resistance in the 133.28 - 133.64 area and expects this area to cap the upside for a continuation lower towards the next minor downside target near 129.12 on the way to below 123.99. Ideally, we can see a decline close to 123.03. However, this scenario will occur only if the pair breaks below 123.99 to fulfill all requirements to the decline from 147.96.

Only an unexpected break above resistance at 134.95 will question our outlook for a continued decline and force a revision of our count.

R3: 134.95

R2: 134.12

R1: 133.64

Pivot: 133.28

S1: 132.52

S2: 131.90

S3: 131.34

Trading recommendation:

We sold GBP at 134.35 with our stop placed at 135.00

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