Elliott wave analysis of GBP/JPY for January 9, 2019

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We still expect that support at 137.65 will be able to protect the downside for more upside pressure towards 139.91 and 140.96 before the wave i is complete and a larger corrective decline begins.

Only a direct break below support at 137.65 will indicate a premature top for the wave i and the fact that the wave ii towards 134.07 is developing.

We will let you know that increased volatility is expected as the Brexit deal comes to a vote in the UK Parliament on Tuesday, January 14.

R3: 139.91

R2: 139.25

R1: 138.75

Pivot: 137.95

S1: 137.65

S2: 137.07

S3: 136.62

Trading recommendation:

We are long GBP from 134.65 with our stop placed at 137.50. After a break above 139.44, we will raise our stop order to 137.85.

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