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Elliott wave analysis of GBP/JPY for January 8, 2020

analytics5e156c8d053d6.png

GBP/JPY has declined nicely from the corrective peak at 143.30 and more downside pressure remains expected towards at least 139.25 and ideally closer to the 50% corrective target at 137.31. Short-term minor resistance at 142.64 ideally will be able to cap the upside for renewed downside pressure through 141.10 towards the 139.25 support.

Only an unexpected break above key-resistance at 143.30 will question our count and indicate a possible premature low being in place at 140.81 and a new impulsive rally having started already in wave v.

R3: 143.64

R2: 143.30

R1: 142.64

Pivot: 142.40

S1: 142.00

S2: 141.55

S3: 141.10

Trading recommendation:

We are short GBP from 142.50 and we will lower our stop to 143.35.

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