FX.co ★ Elliott wave analysis of GBP/JPY for July 8 - 2019

The rally from 135.15 does not follow the path of an impulsive wave. Therefore, it must be corrective that indicates more downside pressure towards our ideal target at 134.50 from where we expect a new rally to begin.

Minor resistance is now seen at 136.05 and important short-term resistance is seen at 136.89. Only a break above the later will indicate that wave 2 has completed and wave 3 to above 148.87 is developing.

R3: 136.89

R2: 136.46

R1: 136.05

Pivot: 135.75

S1: 135.35

S2: 135.00

S3: 134.50

Trade recommendation:

We are looking to buy GBP at 134.65.