Elliott wave analysis of GBP/JPY for September 21, 2020

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We continue to look for a clear signal that GBP/JPY has bottomed in red wave iv/ and red wave v/ to above 142.72 finally is in motion. A break above resistance at 136.59 will be that signal.

In the short-term, we think that minor support near 134.37 will be able to protect the downside for a new test of short-term key-resistance at 136.59 and a break above here will confirm red wave /4 having completed and red wave v taking off.

R3: 136.59

R2: 136.10

R1: 135.58

Pivot: 135.35

S1: 135.09

S2: 134.78

S3: 134.56

Trading recommendation:

We will buy GBP upon a break above minor resistance at 135.35 and place our stop at 134.50

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