Elliott wave analysis of GBP/JPY for October 14, 2020

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GBP/JPY has almost reached the expected target-zone between 135.78 - 136.04 (the low has been seen at 136.11 till now). As long as minor resistance at 136.54 is able to cap the upside, we could see a final dip into the target-zone to complete red wave ii and set the stage for a new impulsive rally in red wave iii towards the 161.8% extension-target of red wave i seen at 143.93.

A break above minor resistance at 136.54 will be the first serious warning that red wave ii has completed, while a break above resistance at 137.13 will confirm the completion of red wave ii and red wave iii being in motion.

R3: 137.13

R2: 136.78

R1: 136.54

Pivot: 136.33

S1: 136.11

S2: 135.78

S3: 135.47

Trading recommendation:

We are long 50% GBP from 135.27 and re-bought 50% at 136.15 which gives us an average of 135.71 and we have placed our stop at 135.00

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