Elliott wave analysis of GBP/JPY for September 4, 2020

The corrective decline in red wave iv/ continues to unfold as expected. More downside pressure is expected towards the ideal target near 138.33 before a new impulsive rally in red wave v/ takes over for a rally towards 144.80 to complete red wave v/ and red wave iii.

In the short-term, we could see a temporary sideways consolidation before the next push lower towards 139.87 and ultimately our ideal target near 138.33.

R3: 141.62

R2: 141.39

R1: 141.16

Pivot: 140.85

S1: 140.64

S2: 140.10

S3: 139.87

Trading recommendation:

We will buy GBP near 138.50