FX.co ★ Elliott wave analysis of GBP/JPY for August 12 - 2019

GBP/JPY continues to move lower and the clear break below 127.93 has extended the decline closer to the 126.19 - 126.31 area and maybe even closer to 125.48 before a firm low is in place. The first strong indication of a bottom being in place is a break back above minor resistance at 128.32 while a break above resistance at 130.06 will confirm the low being in place and a new impulsive rally building.

For now look for a bottom to form in the 126.19 - 126.31 area for a possible new rally.

R3: 128.32

R2: 127.73

R1: 127.30

Pivot: 127.04

S1: 126.52

S2: 126.31

S3: 126.19

Trading recommendation

We will buy GBP at 126.40 with our stop at 126.00 or upon a break above 127.87