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
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