FX.co ★ Elliott wave analysis of GBP/JPY for October 15, 2020

GBP/JPY dipped just below our target zone between 135.78 - 136.04 (the low was seen at 135.66) before GBP/JPY rallied strongly through minor resistance at 136.54 to confirm the completion of red wave ii and the onset of red wave iii towards 143.93.

Short-term, we could see a re-test of the former resistance at 136.54 now acting as support before the next push higher towards 137.87 and 138.31 as the next minor hurdles to overcome.

R3: 137.77

R2: 137.38

R1: 137.15

Pivot: 136.89

S1: 136.76

S2: 136.54

S3: 136.35

Trading recommendation:

We are long GBP from 135.71 and we will move our stop up from 135.00 to 135.60.