Elliott wave analysis of GBP/JPY for September 4, 2019

GBP/JPY dipped closer to the important low at 126.54 (the low was seen at 126.64) but did not break below and this kept our preferred count alive, that wave 2 most likely completed with the test of 126.52 and a new impulsive is ready to develop.

That said, we need to see a break above minor resistance at 129.84 and more importantly a break above resistance at 130.70 to confirm that the expected new impulsive rally is developing.

R3: 130.70

R2: 129.84

R1: 129.30

Pivot: 128.57

S1: 127.85

S2: 127.38

S3: 126.64

Trading recommendation:

We are looking for a buying opportunity upon a break above 129.84 with our stop placed at 126.50