FX.co ★ Elliott wave analysis of GBP/JPY for November 2, 2020

GBP/JPY rallied nicely from 134.37 which could be the low of red wave ii. If this is the case, then a new rally should see GBP/JPY break above the minor peak at 135.81 and more imortantly a bore resistance at 135.95 for a continuation higher as red wave iii gains upside momentum towards 137.67 and ultimately above the former peak at 142.72.

Short-term support remains seen at 134.87 and then at 134.37. Ideally, the latter will be able to protect the downside for the expected break above resistance in the 135.81 - 135.95 area.

R3: 136.35

R2: 135.81

R1: 135.40

Pivot: 135.20

S1: 134.87

S2: 134.37

S3: 134.10

Trading recommendation:

We are long GBP from 135.45 and we have placed our stop at 134.35