GBP/JPY correction in play for the dragon

Mthokozisi Mpofu Knars Capital

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

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

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