09.01.202008:06 Forex Analysis & Reviews: Elliott wave analysis of GBP/JPY for January 9, 2020

GBP/JPY has rallied stronger than expected and is currently testing the peak at 143.30 and will likely exceed it for a test of 143.58 before turning lower again towards 140.80 and the way towards the ideal target seen near 137.31. On the way lower good support is seen at 139.25.

Short-term, we expect GBP/JPY to peak at 143.58 for renewed downside pressure. A break below minor support at 143.04 and more importantly a break below support at 142.75 confirming renewed downside pressure towards 140.80 towards 139.25 and below.

R3: 144.23

R2: 143.96

R1: 143.58

Pivot: 143.04

S1: 142.75

S2: 142.31

S3: 141.96

Trading recommendation:

Our stop at 143.35 has been hit for a small loss of 85 pips. We will sell GBP again at 143.50 with a stop at 144.25 or we will sell GBP upon a break below 143.04 if 143.50 is not reached.