Elliott wave analysis of GBP/JPY for September 11, 2020

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GBP/JPY unexpectedly broke below 136.71 to test the broken downtrend from the 147.91 high. With this back-test fulfilled GBP/JPY should be ready to re-enter the underlying uptrend.

In the short-term, we need a break above minor resistance at 136.44 and more importantly, a break above resistance at 138.36 to confirm that red wave iv/ has completed and red wave v is in motion towards the peak at 142.76 and above.

R3: 138.36

R2: 137.09

R1: 136.44

Pivot: 136.11

S1: 135.75

S2: 135.55

S3: 135.35

Trading recommendation:

Our stop at 136.65 was hit for a 80 pip loss. We will re-buy GBP at 135.55 or upon a break above 136.44 and place our stop at 135.00

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