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Elliott wave analysis of GBP/JPY for May 7, 2019

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We have seen the expected dip to just below 144.80 which could indicate the wave ii has completed and the wave iii higher to 149.16 is developing.

In the short-term, a breakout above minor resistance at 145.45 and, more importantly, a breakout above resistance at 145.94 will indicate that the wave iii is developing towards 149.16.

Only an unexpected breakout below support at 143.74 will abolish our bullish outlook and call for more downside pressure in the wave 2 towards 141.05.

R3: 147.50

R2: 145.94

R1: 145.45

Pivot: 145.35

S1: 144.75

S2: 144.35

S3: 143.74

Trading recommendation:

We have bought GBP at 144.80 and we will place our stop+revers at 143.70

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