FX.co ★ Elliott wave analysis of GBP/JPY for July 25, 2019

GBP/JPY is following our expectations extending a climb. In the short term, we expect support in the 134.62 - 134.75 area to protect the downside for a clear break above 135.09 for a strong run higher to 136.06 and above here finally confirms that wave 2 has completed and wave 3 to above 148.87 is developing.

Only an unexpected break below support at 134.22 will challenge our bullish outlook.

R3: 136.28

R2: 135.50

R1: 135.28

Pivot: 135.09

S1: 134.75

S2: 134.62

S3: 134.42

Trading recommendation:

We are long GBP from 134.85 and we have place a stop at 134.20