Elliott wave analysis of GBP/JPY for August 31, 2020

GBP/JPY rallied into the expected resistance near 141.36 to complete red wave iii. It is now developing red wave iv/. The ideal target for red wave iv/ is seen at 138.34 from where red wave v/ towards at least 142.09 and ideally closer to resistance in the 143.21 - 144.38 area should be seen. As red wave ii/ was a simple zig-zag correction, we should expect a more complex correction in red wave iv/ in form of a flat or maybe a triangle consolidation.

R3: 141.36

R2: 141.14

R1: 140.83

Pivot:140.45

S1: 139.98

S2: 139.55

S3: 139.03

Trading recommendation:

We will buy GBP again at 138.50

The material has been provided by InstaForex Company - www.instaforex.com