FX.co ★ Elliott wave analysis of GBP/JPY for November 19, 2020

The risk-off attitude in overnight trading has changed the corrective shape from 140.32 and more downside pressure towards 136.20 should be expected in a deeper sub-wave correction. Once this correction is complete near 136.20, renewed upside pressure will be expected towards 138.87 and ultimately above 142.72.

Only an unexpected break below the trendline-support at 134.85 will force a recount of our bullish outlook.

R3: 138.87

R2: 138.22

R1: 137.78

Pivot: 137.48

S1: 137.16

S2: 136.77

S3: 136.20

Trading recommendation:

Our stop at 137.45 has been hit for a nice 200 pips profit. We will re-buy GBP at 136.40 or upon a break above 137.95