FX.co ★ Elliott wave analysis of GBP/JPY for October 5, 2020

The GBP/JPY pair reacted very swiftly to the announcement that President Trump had tested positive to the coronavirus. GBP/JPY quickly reached the first target at 135.16 (the low came in at 135.03). It may develop a rally to the former high at 137.02 and to 138.34.

We cannot exclude a second dip from the near peak at 137.02 to at least 135.03 and maybe even closer to solid support near 134.59 before going up again.

R3: 137.45

R2: 137.02

R1: 136.65

Pivot: 136.35

S1: 135.92

S2: 135.60

S3: 135.18

Trading recommendation:

We are long GBP from 133.51 and we took 50% frofit at 135.50 for a sweet profit. We will rebuy GBP at 135.15 or upon a break back above 137.02 and we will move our stop higher to 135.00.