Elliott wave analysis of GBP/JPY for January 7, 2019

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As long as support at 136.62 is able to protect the downside, we should continue to look higher towards strong resistance in the 139.57 - 140.70 area before a more substantial correction should be expected.

A break below minor support at 137.69 will call for a corrective decline towards 137.11, but a break below 136.62 will be needed to call for a deeper correction unfolding.

R3: 140.70

R2: 139.57

R1: 138.27

Pivot: 137.69

S1: 137.11

S2: 136.62

S3: 135.75

Trading recommendation:

We are long GBP from 134.65 and we will raise our stop to 136.50.

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