FX.co ★ Elliott wave analysis of GBP/JPY for June 3, 2020

GBP/JPY is about to test solid resistance at 135.10 before climbing higher towards 141.06. The clear break out of the base-channel also confirms that wave three is developing. We are currently looking for the peak of red wave iii. This could be seen here at 137.09 but it can be very difficult for the third wave to touch the peak. As red wave ii/ was a sideways complex correction, we should expect a simple zig-zag correction to the 135.00 - 135.30 support-zone before moving higher again.

R3: 138.58

R2: 137.52

R1: 136.95

Pivot: 136.25

S1: 135.85

S2: 135.50

S3: 135.00

Trading recommendation:

We are long GBP from 131.95 and we will raise our stop to 133.50