FX.co ★ Elliott wave analysis of GBP/JPY for October 8, 2020

Support at 135.74 was easily broken. GBP/JPU is ready to push to new highs above 137.45 towards resistance at 138.34. A break above the former peak at 142.72 is expected.

Only an unexpected break below support at 135.98 will question our bullish outlook and call for more downside pressure to 134.98, but the underlying uptrend will not be invalidated.

R3: 138.09

R2: 137.78

R1: 137.40

Pivot: 137.13

S1: 136.88

S2: 136.78

S3: 136.45

Trading recommendation:

We are long GBP from 135.27 and we will raise our stop to 136.35