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Elliott wave analysis of GBP/JPY for January 4, 2021

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GBP/JPY has jumped to new highs after the Brexit deal finally was agreed in late December. This has paved the way for GBP/JPY to continue to push higher towards the 142.72 target and a break above here confirms a continuation higher towards 147.96 as the next major upside target.

Short-term key-support is seen at 139.45 which needs to be able to protect the downside or we will have to look at our alternate short-term counts for GBP/JPY, but for now we stick with our preferred count call for more upside towards 142.72.

R3: 142.72

R2: 142.03

R1: 141.42

Pivot: 140.66

S1: 140.24

S2: 139.45

S3: 138.87

Trading recommendation:

We bought GBP at 140.71 and we have placed our stop at 139.40

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