FX.co ★ Elliott wave analysis of GBP/JPY for September 10, 2019

GBP/JPY has rallied back above the 132.16 peak and is currently testing resistance at 132.66. We expect this resistance to cap the upside for another decline closer to 130.06 and likely even 129.41 to complete an expanded flat correction as red wave ii. Once red wave ii is complete, a new impulsive rally towards 135.40 should be expected.

R3: 133.00

R2: 132.85

R1: 132.66

Pivot: 132.11

S1: 131.87

S2: 131.44

S3: 130.79

Trading recommendation:

We are looking to buy 50% GBP at 130.15 and another 50% at 129.50.