FX.co ★ Elliott wave analysis of GBP/JPY for June 23, 2020

GBP/JPY is hovering above key-support at 131.63 and the break above minor resistance at 133.25. This could indicate the completion of red wave ii at 131.68 for a new impulsive rally towards 138.04 and for a continuation towards 148.32.

Thus, we need more evidence before we are sure that the correction in red wave ii is completed. The first target is a break above resistance at 133.81 and more importantly a break above key-resistance at 136.35, but so far, the rally from 131.68 looks promising.

R3: 135.18

R2: 134.38

R1: 133.81

Pivot: 133.52

S1: 133.08

S2: 132.72

S3: 132.10

Trading recommendation:

We are long on GBP from 132.85 and our stop remains locked at 131.55