FX.co ★ Elliott wave analysis of GBP/JPY for March 18 - 2020

GBP/JPY made a new low at 128.57. It continues to decline in wave 2. The loss of downside momentum is now massive. It should be just a matter of time before minor resistance at 131.28 is broken indicating that wave 2 has completed and wave 3 is in motion.

To confirm that wave 3 is unfolding we need a break above resistance at 134.32. When this resistance is broken, we expect a quick rally to 137.01 or to 140.96. The pair could grow to 147.96.

R3: 132.28

R2: 131.28

R1: 130.27

Pivot: 129.36

S1: 128.57

S2: 128.10

S3: 127.69

Trading recommendation:

We bought GBP at 129.00 and we placed our stop at 128.00