FX.co ★ Elliott wave analysis of GBP/JPY for February 12, 2020

The correction in GBP/JPY from 141.21 has extended further than expected and is hovering just below the key resistance at 142.50. We still expect this resistance will cap the upside for renewed downside pressure through minor support at 142.02 indicating another push lower towards 141.21 and 140.80 on the way towards 139.24.

An unexpected break above key resistance at 142.50 will be of concern and indicate that a premature low for wave iv already has been found at 140.80.

R3: 142.79

R2: 142.61

R1: 142.50

Pivot: 142.28

S1: 142.02

S2: 141.86

S3: 141.55

Trading recommendation:

We are short GBP from 142.80 with our stop placed at 142.50