FX.co ★ Elliott wave analysis of GBP/JPY for September 23, 2020

GBP/JPY saw a final dip below 133.51 to a low of 133.08 just as we expected. This should complete wave ii/, but we need a break above minor resistance at 134.57 and more importantly, a break above resistance at 135.55 to confirm that wave ii/ has completed and wave iii/ now is in motion.

Wave iii/ should ultimately break above the former peak at 142.72.

At no point should the low at 133.08 be broken and key-support at 131.68. A break below that level will invalidate our bullish outlook.

R3: 136.00

R2: 135.55

R1: 134.57

Pivot: 133.96

S1: 133.48

S2: 133.08

S3: 132.85

Trading recommendation:

We bought GBP at 133.51 and we have placed our stop at 133.00