FX.co ★ Elliott wave analysis of GBP/JPY for January 31, 2019

Key support at 142.69 has protected the downside and is expected to continue to do so. The corrective decline to 142.69 has been followed by a possible hidden divergence. This normally indicates a powerful rally will follow once the corrective decline is complete.

A break above minor resistance at 143.37 will be a strong indication that wave iv/ is complete and wave v/ higher to 146.10 is developing. A break above resistance at 144.02 confirms wave v/ being in motion for the rally closer to 146.10,

R3: 144.49

R2: 144.02

R1: 143.37

Pivot: 142.69

S1: 142.25

S2: 141.82

S3: 141.42

Trading recommendation:

We are long GBP from 140.90 with our stop placed at 142.50. If our stop is hit, we will re-buy GBP upon a break above 143.37.