Elliott wave analysis of GBP/JPY for October 2, 2020

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GBP/JPY broke above key-resistance at 136.60, but only to fail and break back down again, indicating a more complex correction unfolding for a revisite to good support at 135.23, but ultimate we should expect a small dip below this support for a dip closer to 134.59 to complete this complex correction and set the stage for the next impulsive rally higher through resistance at 136.60 towards 138.36 and above.

R3: 136.70

R2: 136.53

R1: 136.11

Pivot: 135.80

S1: 135.51

S2: 135.23

S3: 134.59

Trading recommendation:

We are long GBP from 133.51 and we will take 50% profit at 136.25 or upon a break below support at 135.50.

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