Elliott wave analysis of GBP/JPY for April 29 - 2020

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The range-trading continues between 132.93 - 133.59. The low volatility is most likely a pre-courser for downside acceleration once this deadlock is resolved. We need to see a break below minor support at 132.36 and more importantly a break below support at 131.88 to confirm that the next impulsive wave of the decrease from 135.75 is in motion. Ultimately we are looking for a break below 123.99 to complete the long-term decline from 147.96 and set the stage for a new impulsive rally. For now, our focus should remain on the downside for a final drop below 123.99.

R3: 134.95

R2: 134.12

R1: 133.68

Pivot: 133.28

S1: 132.36

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 support at 131.88 we will lower our stop to 134.00

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