FX.co ★ Elliott wave analysis of GBP/JPY for May 12 - 2020

GBP/JPY has stalled at the 50% corrective target of the decline from 135.45 to 130.63. It is likely to complete red wave i and a break below minor support at 131.85. It may indicate the onset of red wave iii/ towards at least 125.41 and possibly even closer to the 123.99 bottom. Ultimately we expect the 123.99 to be broken shortly to complete the long-term decline from 147.95. Once it is completed, a new impulsive rally is expected. Presently, we will be looking for a break below minor support at 131.85 to confirm the next downside pressure.

R3: 133.59

R2: 133.20

R1: 132.47

Pivot: 131.85

S1: 131.52

S2: 131.63

S3: 129.81

Trading recommendation:

We sold GBP at 132.07 and has placed our stop at 133.25