Elliott wave analysis of GBP/JPY for December 22, 2020

GBP/JPY failed to break above short-term key resistance at 140.35 for a continuation higher to 142.72. The failed attempt to break above the key-resistance continues to GBP/JPY in a 136.95 - 140.35 range. Ultimately we expect a break above key-resistance at 140.35 but with the potential risk of a hard Brexit has increased the risk of a break below support at 136.95 that will revers the uptrend to renewed downside pressure towards 133.02 and possibly even closer to 128.70 in the weeks ahead.

R3: 140.35

R2: 139.59

R1: 139.05

Pivot: 138.77

S1: 138.29

S2: 137.69

S3: 136.95

Trading recommendation:

We will sell a break below 136.95 or buy a break above 140.35