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Elliott wave analysis of GBP/JPY for October 6, 2020

analytics5f7c005302525.jpg

GBP/JPY has moved above key resistance at 136.66. It appears the pair has resumed an upward movement towards at least 138.34 and possibly even closer to 140.77. Red wave iii gains upside momentum. In the short-term, we could see a temporary pause and test of the former key-resistance at 136.66 and maybe even a slight dip just below before a significant rise towards the next upside target at 138.34.

It will take an unexpected break below 135.05 to invalidate our immediate bullish outlook.

R3: 138.34

R2: 137.73

R1: 137.44

Pivot: 137.15

S1: 136.84

S2: 138.66

S3: 136.37

Trading recommendation:

We are long GBP from 135.27 ((133.51+137.02)/2 = 135.27) and we have placed our stop at 135.00

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