FX.co ★ Elliott wave analysis of GBP/JPY for October 23 - 2019

The expected correction is now unfolding and we may see a break below minor support at 138.60 soon to confirm more corrective downside progress towards 135.67 from where a new impulsive rally is expected towards 144.98 and higher.

Now we are monitoring the movement of the wave iii that is pushing higher. Corrections during this phase tend to be smaller and often subnormal. So, it is highly possible that these corrections may fail to hit our target.

R3: 141.12

R2: 140.56

R1: 139.98

Pivot: 139.07

S1: 138.60

S2: 137.84

S3: 137.44

Trading recommendation:

We will buy GBP at 135.75 or upon a break above 141.12