FX.co ★ Elliott wave analysis of GBP/JPY for October 30, 2020

The risk-off sentiment continued to dominate the market yesterday as the coronavirus is raging in Europe. Versus GBP, JPY is gaining momentum amid risk aversion. Therefore, GBP/JPY fell to 134.50. After a deeper decline, the pair may dip to the 78.6% corrective target of red wave i at 134.11 before red wave ii finally is complete.

In the short-term, we need a break above minor resistance at 135.38 and more importantly a break above resistance at 136.30 to confirm that red wave ii is completed and red wave iii is in motion but until that the corrective trend lower will remain in force.

R3: 136.30

R2: 135.38

R1: 134.87

Pivot: 134.63

S1: 134.50

S2: 134.34

S3: 134.11

Trading recommendation:

We are long GBP from 135.45