Elliott wave analysis of GBP/JPY for January 23 - 2020

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GBP/JPY has broken resistance at 144.53 (the high has been seen at 144.61) which has forced us to review our counts. We don't think the sideways price-action from 141.14 is the start of a new impulsive rally but rather an expanded flat wave b and more downside pressure should be expected in wave c towards the target-zone between 139.29 - 139.83 and maybe even closer to equality with a wave a which would take wave c lower to 137.86.

To confirm the wave b is complete, we need a break below 142.77 but a break below minor support at 143.70 will be a strong indication that wave b has completed and wave c lower to at least 139.83 is unfolding.

R3: 144.61

R2: 144.15

R1: 143.95

Pivot: 143.70

S1: 143.38

S2: 142.77

S3: 142.355

Trading recommendation:

Our stop at 144.60 was hit for a 95 pip loss. We will re-sell GBP at 143.95 or upon a break below 143.70 with our stop placed at 144.65

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