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Elliott wave analysis of GBP/JPY for February 19, 2021

analytics602f5d93a7712.jpg

There was no time for the expected correction in blue wave iv/ to correct in a simple manner, but we think a more complex correction is unfolding in blue wave iv/ and expect resistance near 147.97 to be able to cap the upside for a deeper correction closer to 145.28 before blue wave v/ is ready to take over for a rally towards resistance in the 155.55 - 156.61 area.

A break below minor support at 146.41 will indicate that the final dip closer to 145.28 is in motion.

R3: 148.87

R2: 148.23

R1: 147.91

Pivot: 147.28

S1: 146.66

S2: 146.36

S3: 145.95

Trading recommendation:

We are long 50% GBP from 142.27 and we will raise our stop to 146.40

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