FX.co ★ Elliott wave analysis of GBP/JPY for July 17, 2020

GBP/JPY has traded sideways for the last week, but this sideways correction is now coming to an end. We do expect a final dip closer to 133.65 to complete this correction and set the stage for the next impulsive rally through resistance at 135.92 and to 139.67.

Only a direct break above minor resistance at 135.48 will indicate that the sideways correction has come to an end and the next impulsive rally is unfolding.

R3: 136.85

R2: 135.93

R1: 135.17

Pivot: 134.50

S1: 134.00

S2: 133.65

S3: 133.24

Trading recommendation:

We will buy GBP at 134.00 or upon a break above 135.48