Elliott wave analysis of GBP/JPY for January 11, 2019

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GBP/JPY dipped briefly to 137.46 from where it regained traction and moved higher again. We continue to look for a final spike higher to the ideal target for wave i near 140.79 before a more substantial correction in wave ii should be expected.

That said, the upcoming Brexit vote in the UK Parliament on Tuesday, will increase uncertainty and the volatility and the trading risk should mirror this increased risk environment.

R3: 139.11

R2: 138.51

R1: 138.32

Pivot: 138.07

S1: 137.68

S2: 137.46

S3: 136.82

Trading recommendation:

Our stop at 137.50 was hit for a profit of 285 pips. We will stay on the sideline for now.

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