GBP/JPY is nearing strong resistance zone

Gregor Horvat Wavetraders

GBP/JPY has been in a strong bullish phase, but five-wave bullish cycle within wave (5) up from 2022 swing lows can be completed after recent strong reversal down back below channel support lines. In fact, drop from the high is impulsive on a smaller time frame, so it’s wave A that stabilized near 178 support area as expected. As such, current rise is corrective, ideally B wave that can be still in progress as a bigger correction before a continuation lower for wave C. Ideal resistance is at that channel line, from the outside, around 196 – 200 area.

GBP/JPY daily chart

GBP/JPY is looking for a higher resistance within wave C of (B) in the 4-hour chart, as it can be now breaking out of subwave »iv« triangle into subwave »v« of C, so keep an eye on next strong 196 – 200 resistance zone, from where bears for a higher degree wave (C) may show up.

GBP/JPY four-hour chart

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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