Elliott wave analysis of GBP/JPY for November 3, 2020

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After an uneventful overnight trading session, today we are expecting more clear shifts. Contrary to EUR/JPY, the trajectory of GBP/JPY is difficult to forecast. The options remain multiple. Our preferred count shows that GBP/JPY completed a larger corrective decline in March with the dip to 124.09 and has started a new impulsive rally towards at least 157.65 and the longer-term closer to the 2015 peak at 195.88. We need a clear break above the wave 1/ peak at 142.72 to confirm that wave 3/ higher is in motion towards at least 147.49 on the way higher towards 157.65.

However, as long as minor resistance at 138.04 is able to cap the upside, we cannot exclude a larger correction in wave 2/ closer to 129.70 to complete the corrective wave 2/.

R3: 148.18

R2: 142.72

R1: 138.04

Pivot: 133.05

S1: 129.70

S2: 126.55

S3: 124.09 - Can't be broken or we will be forced to a recount of our long-term scenario

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