Elliott wave analysis of GBP/JPY for Mar 17, 2020

Posted On 17 Mar 2020

The global volatility and uncertainty due to the coronavirus continue to weigh on the financial markets. The major central banks have imposed financial aid packages and lowered interest rates.

GBP/JPY was pushed lower our ideal target at 131.12 at the 78.6% corrective target and dipped to a low of 128.88. We do believe this is an overreaction and we also see a clear loss of downside momentum indication that a bottom should be found soon. We need a break above 131.28 and more importantly, a break above resistance at 134.32 that confirms wave 2/ has completed and wave 3/ is in motion for an ultimate break above 147.97.

R3: 134.32

R2: 133.68

R1: 132.61

Pivot: 131.28

S1: 130.73

S2: 129.47

S3: 128.88

Trading recommendation:

Our stop at 130.95 was hit for a small loss of 25 pips. We will re-buy GBP at 129.00 or upon a break above minor resistance at 131.28.

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

Source:: Elliott wave analysis of GBP/JPY for March 17 – 2020

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