FX.co ★ Elliott wave analysis of GBP/JPY for October 17 - 2019

GBP/JPY continues to push higher having tested resistance at 140.06 (the high has been seen at 140.10). We see a clear loss of short-term upside momentum. It could indicate that a correction towards 135.71 soon will be seen. That said, we must remember that wave three is rising higher and correction tends to be short and often sub-normal. So, a continued push higher to 142.91 should not be a surprise.

A break below minor support at 137.49 will call for a dip to 135.71 before the next rally higher should be expected.

R3: 142.91

R2: 141.72

R1: 140.10

Pivot: 139.16

S1: 138.42

S2: 137.49

S3: 136.45

Trading recommendation:

We are long GBP from 131.25 with our stop placed at 135.25