FX.co ★ Elliott wave analysis of GBP/JPY for January 4, 2019

There was no time for a corrective decline to 132.78 before the next raly higher. GBP/JPY rallied directly above resistance at 134.62 indicating, that a long-term bottom is in place. Now we would like to see a break above resistance at 137.74 as the next strong indication that a long-term low is in place.

Support is now seen at 136.35 and again at 135.66 where solid short-term support is spotted.

R3: 138.51

R2: 138.08

R1: 137.74

Pivot: 136.58

S1: 136.23

S2: 135.66

S3: 135.20

Trading recommendation:

We bought GBP at 134.65 and we will place our stop at 135.50.