GBP/JPY correction in play for the dragon
|The chart below shows GBPJPY has been in an impulsive move higher since the 19th of March 2020. We've had a corrective WXY pattern which was completed on the 23rd of April 2021 and rallied impulsively since in five waves and tested the upper channel of our long-term channel.
A flat correction for wave (ii) and a triangle in wave (iv) meet the guideline of alternation between corrective waves. Wave (iv) had a sharp impulse higher giving us confidence that this was the final move higher before we see a larger correction lower.
We are now looking for a correction lower down to the previous wave (iv) 153.812 as a minimum and wave (Y) 149.301 as the final target for GDPJPY.
Key news events to look out for:
Tuesday 1st of June - BOE Gov Bailey Speaks.
Thursday 3rd of June - BOE Gov Bailey Speaks.
Res: 155.942; 156.430; 157.042
Sup: 153.126; 152.388; 150.783
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.