FX.co ★ Elliott wave analysis of GBP/JPY for February 10, 2020

GBP/JPY has followed the expected path lower and should now respect short-term key resistance at 142.38 for the next part for the decline towards 140.80 on the way lower to at least 139.24 and possibly even closer to the equally target at 137.86.

An unexpected break above key resistance at 142.38 will indicate that a premature low already was found at 140.80 and a new impulsive rally is developing to above 147.94.

R3: 142.38

R2: 142.05

R1: 141.75

Pivot: 141.71

S1: 141.48

S2: 141.21

S3: 140.80

Trading recommendation:

We are short GBP from 142.80 and we will lower our stop+revers to 142.50