Elliott wave analysis of GBP/JPY for December 23 - 2019

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GBP/JPY spiked to a high 1.4773 as the Conservative Party won the election and Brexit finally seems to be finalized. The spike to 1.4773 completed red wave v and black wave iii and a correction in black wave iv are now unfolding. The first part of this correction indicates that a minor five wave structure is in place and a zig-zag correction is developing. A wave of this zig-zag is expected to complete in the 1.4136 - 1.4142 area for setting the stage for a rally in wave b towards resistance in the 1.4470 -1.4548 zone before wave c takes over for a second decline towards 1.3982 to complete the zig-zag correction from 1.4773.

R3: 1.4444

R2: 1.4381

R1: 1.4346

Pivot: 1.4304

S1: 1.4230

S2: 1.4172

S3: 1.4142

Trading recommendation:

We took profit on the final 50% at 1.4445 and booked another nice 433 pips and is now waiting for an opportunity to re-enter this market. We will buy 50% at 1.4150 for a corrective ride towards the 1.4470 - 1.4548 target zone.

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