Elliott wave analysis of GBP/JPY for May 11 - 2020

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The correction from 130.63 has extended through resistance at 131.92 for a test of the 50% corrective target of the decline from 135.45. We should see solid resistance in the 133.00 - 133.18 area which ideally will be able to cap the upside for a break below support at 132.07 indicating renewed downside pressure towards 130.63 and below towards 123.99. It will complete the long-term decline from 147.95. Once we have seen the final dip below 123.99 a new impulsive rally should be expected.

R3: 133.59

R2: 133.18

R1: 133.00

Pivot: 132.64

S1: 132.07

S2: 131.49

S3: 131.11

Trading recommendation:

We where stopped out at 132.50 and we will re-sell GBP upon a break below 132.07

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