Elliott wave analysis of GBP/JPY for October 7, 2020

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GBP/JPY broke back below key-resistance at 136.66, which is a bit disappointing. It moved to a low of 135.74 to test the ascending support-line from the 133.11 low. This support-line should be able to protect the downside for the next push higher through resistance at 136.66 and 137.44 for a continuation higher to 138.61 and 144.08 as the next resistance level.

Only an unexpected break below the support-line and more importantly a break below support at 135.03 will invalidate our immediately bullish outlook. We think this is a low-risk possibility but it should be taken into account.

R3: 136.83

R2: 136.52

R1: 136.25

Pivot: 136.10

S1: 135.95

S2: 135.72

S3: 135.32

Trading recommendation:

We are long GBP from 135.27 and we will raise our stop to 135.65

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