Elliott wave analysis of GBP/JPY for March 24, 2021

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GBP/JPY broke below our target at 150.09 without problem indicating that we are further in the count than we anticipated. We was expecting the completion of blue wave iv, but with the clear break below 150.09 we can conclude that blue wave iv completed at 150.76 and blue wave v complete at 152.55 this also completed red wave iii/ and we should have been expected a deeper and more prolonged correction in red wave iv/. The ideal target for red wave iv/ is seen near 147.40, but the decline from 152.55 does look a bit stretched already so a temporary rally to 150.40 should be expected before the next leg lower to complete red wave iv/ near 147.40.

R3: 150.40

R2: 150.00

R1: 149.27

Pivot: 148.90

S1: 148.62

S2: 148.09

S3: 147.40

Trading recommendation:

Our stop at 149.09 was triggered for a 100 pips loss. We will buy GBP here at 148.78 and place our stop at 148.58 and take profit at 150.00.

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

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