Elliott wave analysis of GBP/JPY for May 4, 2020

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GBP/JPY failed to break below short-term important support at 131.88 and instead staged a mini rally to 135.45 just below the April peak at 135.75. This rally wasn't expected, but the fact that it didn't break above the April 9'th high is positive in relation to our preferred count that calls for one more decline to below 123.99 to complete the decline from 149.96.

We still need that break below short-term key-support at 131.88 to confirm renewed downside pressure to below 123.99.

R3: 135.45

R2: 134.27

R1: 133.40

Pivot: 132.64

S1: 132.35

S2: 131.88

S3: 131.10

Trading recommendation:

We will sell GBP at 134.10 or upon a break below key-support at 131.88

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