FX.co ★ Elliott wave analysis of GBP/JPY for August 1 - 2019

GBP/JPY tried to recover from the 131.61 low but did not manage to break above minor resistance at 133.32. The failure to break above minor resistance at 133.32 keeps the possibility for a final dip closer to 130.61 alive. A short-term break below minor support at 131.79 will confirm that the dip closer to 130.61 is unfolding. Therefore, if minor support at 131.79 is able to protect the downside for a break above minor resistance at 133.32, it will ease the downside pressure and be the first strong indication that wave 2 could be finally complete and call for a more serious test of key resistance at 134.45.

R3: 133.32

R2: 132.99

R1: 132.58

Pivot: 132.30

S1: 132.17

S2: 131.79

S3: 131.61

Trading recommendation:

We are long GBP from 133.65