FX.co ★ Elliott wave analysis of GBP/JPY for January 18, 2021

The break below 141.38 demonstrates that the push to 142.26 cannot be green wave iv, but rather a green wave i/, and the ongoing decline is green wave ii/. We expect that short-term key-support 140.31 will be able to protect the downside for a break above minor resistance at 141.09 indicating that the correction from 124.26 is complete and a new push to above 142.26 is developing.

A break below 140.31 will force us to make a revision of our bullish count.

R3: 141.50

R2: 141.29

R1: 141.06

Pivot: 140.73

S1: 140.63

S2: 140.31

S3: 140.09

Trading recommendation:

We are long GBP from 140.71 with our stop placed at 140.25