FX.co ★ Elliott wave analysis of GBP/JPY for December 11 - 2019

GBP/JPY is trying to lift up despite the lack of upside momentum. However, as long as minor support at 142.37 is able to protect the downside, we could see a final spike higher to the target at 144.55 to complete red wave v and black wave iii and set the stage for a larger and long-term correction in black wave iv.

As black wave ii was with simple but deep zig-zag correction, we should expect black wave iv to shallow. So, now keep your focus on the upside as long as support at 142.37 is able to protect the upside.

R3: 144.55

R2: 143.87

R1: 143.25

Pivot: 142.34

S1: 141.70

S2: 141.24

S3: 140.88

Trading recommendation:

We are long GBP from 140.12 with our stop placed at 142.25. We will take half profit at 143.15 and half profit at 144.45 if seen.