Elliott wave analysis of GBP/JPY for April 24 - 2020

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GBP/JPY has seen a minor consolidation and moved towards the top of the resistance-area between 133.28 - 133.64 before moving lower again. We are looking for a break below support at 131.88. If the pair reaches this level, it may decline from the wave iv peak at 135.72. Ultimately wave v should move below the low of wave iii at 123.99 and once this low has been surpassed all requirements to the decline from 147.96 will have been fulfilled and a long-term bottom could be formed.

Only an unexpected break above 134.95 will question our continued bearish count and force a revision of our count.

R3: 134.95

R2: 134.12

R1: 133.68

Pivot: 133.28

S1: 132.52

S2: 131.88

S3: 131.34

Trading recommendation:

We are short GBP from 134.35 with our stop placed at 135.00. Upon a break below 131.88 we will move our stop lower to 134.00.

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