FX.co ★ Elliott wave analysis of GBP/JPY for June 10, 2020

GBP/JPY has already reached the 38.2% corrective target at 136.33. No more downside is needed in red wave iv. However, we should expect more sideways correction in the form of a triangle consolidation. The RSI index 41.39 was not broken after a first decline. We should expect it to be so in the second decline from 139.07.

If the scenario of a triangle consolidation is correct, then more time will be needed to finish the red wave iv correction before the final rally to 141.06.

R3: 138.40

R2: 137.98

R1: 137.57

Pivot: 137.27

S1: 136.90

S2: 136.63

S3: 136.33

Trading recommandation:

We are 100% long GBP with an average rate of 134.60. We will move our stop higher to 135.75 for the full position. We will take profit for 50% at 138.35.