Elliott Wave indicates bearish sequence for GBP/JPY, favoring a downward trajectory [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

The Elliott Wave perspective indicates that GBPJPY has entered a bearish sequence from its October 30, 2024 high. It signals further downside potential. From that peak, wave (W) concluded at 187.05, followed by a wave (X) rally that terminated at 195.94, as illustrated in the accompanying 1-hour chart. Currently, wave (Y) is unfolding lower, exhibiting an internal zigzag structure.

Breaking it down from the wave (X) high, wave ((i)) declined to 192.7. The subsequent wave ((ii)) rally peaked at 195.77. The pair then resumed its descent in wave ((iii)), reaching 187.51, before a wave ((iv)) bounce concluded at 190.29. The final leg, wave ((v)), completed at 186.05, marking the end of wave A in a higher degree. From there, wave B unfolded as a zigzag corrective pattern: wave ((a)) rose to 188.83, and wave ((b)) pulled back to 187.09. Wave ((c)) advanced to 190.08, completing wave B. The pair has since resumed its decline in wave C.

GBP/JPY 60 Minute Elliott Wave chart

In the near term, as long as the pivotal high at 195.94 remains intact, any rallies are expected to falter in a 3, 7, or 11 swing structure, reinforcing the outlook for further downside. Traders monitoring this setup should anticipate limited upside and watch for confirmation of this bearish continuation.

GBP/JPY [Video]

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.