Elliott wave analysis of GBP/JPY for August 12, 2020

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GBP/JPY should soon test the ideal target for blue wave iii at 140.35 from where a minor correction/consolidation closer to 139.10 and maby even closer to 137.92 is expected. Short-term minor support at 138.62 should be able to protect the downside for the expected pop to 140.35 to complete blue wave iii and set the stage for a correction in blue wave iv.

R3: 140.35

R2: 140.00

R1: 139.50

Pivot: 139.08

S1: 138.62

S2: 138.22

S3: 137.27

Trading recommendation:

We are long GBP from 135.43 and we have raised our stop to 137.70 and we will take profit on 50% of our long position at 140.25.

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