FX.co ★ Elliott wave analysis of GBP/JPY for June 11, 2020

GBP/JPY broke below the 38.2% corrective target at 136.34. This indicates a continuation of a drop lower to the 50% corrective target at 135.26 and, of course, a shift in the corrective shape too. A triangle consolidation is still possible, but, this time, we cannot say what shape this red wave iv correction may take.

To be sure that the red wave iv is completed, we need a break back above the minor resistance at 137.48, which may call for the renewed upside pressure and possibly a new impulsive rally towards 141.05.

The RSI declined below the 41.39 index and confirmed that this correction fulfilled all requirements.

R3: 136.65

R2: 136.43

R1: 135.95

Pivot: 135.61

S1: 135.33

S2: 135.26

S3: 135.05

Trading recommendation:

Our stop at 135.75 was hit for another nice profit of 115 pips. We are planning to re-buy the GBP at 135.35 or upon a break above 136.30.