FX.co ★ Elliott wave analysis of GBP/JPY for June 27, 2019

The GBP/JPY pair is testing short-term important resistance at 137.13 and a clear breakout above here will confirm that the correction in wave 2 did complete at 135.35 and wave 3 is now developing for an ultimate breakout above the 148.87 peak.

That said, we also need to stress the importance of the possibility that resistance at 137.13 holds firm for a break back below 135.75 that will call for a continuation closer to 134.50. So wait for a final dip closer to 134.50 or a clear breakout above 137.13 before buying GBP.

R3: 138.26

R2: 137.79

R1: 137.44

Pivot: 137.18

S1: 136.83

S2: 136.54

S3: 136.31

Trading recommendation:

We are going to buy GBP at 134.65 or upon a breakout above 137.13.