Elliott wave analysis of GBP/JPY for September 18, 2020

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The pair declined after the prolonged sideways consolidation between 135.41 and 136.59. We saw a clear break below support at 135.41 for a dip to 134.50 to test the channel-support. This support held well. We need a break back above resistance at 136.59 to confirm that red wave iv/ finally has completed and red wave v/ can take hold for a new impulsive rally. It should break above the former peak at 142.72.

R3: 137.08

R2: 136.59

R1: 136.10

Pivot: 135.60

S1: 135.35

S2: 135.06

S3: 134.50

Trading recommendation:

We will buy GBP upon a break above 136.59

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