Elliott wave analysis of GBP/JPY for March 9, 2021

GBP/JPY has broken nicely above the former peak at 150.44 and should continue higher towards the next extension target at 152.54. This should complete blue wave v and red wave iii/ and set the stage for a new temporary correction towards support in the 150.21 - 150.37 area. It's possible that the correction will be slightly deeper than 150.21, but the potential downside should be limited and it should just be a question about time before the underlying uptrend resumes towards the ideal target in the 155.55 - 156.61 area.

A break below 150.85 will indicate that a temporary top is in place and the correction in red wave iv/ is unfolding.

R3: 152.54

R2: 152.00

R1: 151.60

Pivot: 150.99

S1: 150.85

S2: 150.37

S3: 150.21

Trading recommendation:

We are long GBP from 149.25 and we will move our stop higher to 150.00. We have placed our stop-profit at 152.25