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

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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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