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Elliott wave analysis of GBP/JPY for January, 2019

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GBP/JPY has rallied well and a so long as minor support 138.51 max. 137.59 is able to protect the downside more upside pressure towards 139.48 and 140.69 remains expected.

We do see signs of the rally from 131.55 getting weaker, but as long as support at 138.51 is able to protect the downside, all we might get is a short period of consolidation before GBP/JPY continues higher towards 139.48 and above.

Only a break below support at 137.59 will indicate a deeper correction towards 133.88.

R3: 140.69

R2: 140.03

R1: 139.17

Pivot: 138.51

S1: 138.04

S2: 137.59

S3: 137.14

Trading recommendation:

We are long GBP from 134.65 and we will raise our stop to 137.50

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