GBP/JPY Sellers in Control
|Short term Elliott wave view in GBPJPY favors further downside due to the 5 swing sequence from Jan 26 high (144.84). We are calling the structure of the decline from 144.84 as an Impulse Elliott Wave. An impulse is a 5 waves move where subdivision of wave 1, 3, and 5 is also in 5 waves but in a lesser degree. Down from 144.84, wave ((i)) ended at 141.1 and wave ((ii)) ended at 143.35. Pair has broken below wave ((i)) at 141.1, signalling that the next leg lower has started.
We can see subdivision of wave ((i)) in impulsive 5 waves of a lesser degree. Wave (i) ended at 142.22, wave (ii) ended at 144.17, wave (iii) ended at 141.73, wave (iv) ended at 142.45, and wave (v) of ((i)) ended at 141.1. The internal of wave ((ii)) rally unfolded as a zigzag Elliott Wave structure. Wave (a) ended at 142.63, wave (b) ended at 141.7, and wave (c) of ((ii)) ended at 143.35. Subsequent decline in wave ((iii)) appears impulsive and we expect wave (i) of ((iii)) to end soon. Pair should then rally in wave (ii) to correct the decline from 143.35 high, but the rally should fail in 3, 7, or 11 swing below 143.35 for further downside. We don’t like buying the pair.
GBPJPY 1 Hour Elliott Wave Chart
GBPJPY Chart Of The Day Video
Become a Successful Trader and Master Elliott Wave like a Pro. Start your Free 14 Day Trial at - Elliott Wave Forecast.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.