The GBPJPY daily chart indicates a bullish trend, with price action currently in impulsive mode. This upward momentum is driven by navy blue wave 1, part of a larger gray wave 3. This structure implies the pair is in the early stages of a broader bullish phase.

Wave analysis shows navy blue wave 1 nearing its end within gray wave 3. This early wave typically marks the start of a new trend. The expected next move is navy blue wave 2, which is usually a corrective retracement after the impulsive wave completes.

The technical outlook suggests GBPJPY is set for continued gains as navy blue wave 1 continues within gray wave 3. The impulsive nature of this move indicates strong institutional buying and potential price increases in upcoming sessions as the wave completes.

GBP/JPY Elliott Wave analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Orange wave 5.

Position: Navy blue wave 1.

Direction (Next Lower Degree): Navy blue wave 2.

Details: Orange wave 4 has likely completed; orange wave 5 is now in motion.

The GBPJPY 4-hour chart highlights a bullish trend, with the market in impulsive mode. The current wave is orange wave 5, part of navy blue wave 1. This signals the final phase of an advancing impulse wave within a broader bullish cycle.

The analysis indicates orange wave 4 has ended, giving way to orange wave 5. This final impulsive wave often sees strong price movement. The expected next move is navy blue wave 2, likely a corrective step after the completion of the fifth wave.

The current structure suggests GBPJPY is near the end of its upward move, with orange wave 5 active. Despite continued buying strength, caution is advised as this wave may soon transition into a corrective phase.

GBP/JPY Elliott Wave analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD holds steady below 1.1800

EUR/USD moves sideways in a narrow channel below 1.1800 as the market volatility remains low ahead of the New Year holiday. On Tuesday, investors will pay close attention to the minutes of the Federal Reserve's December policy meeting.

GBP/USD retreats below 1.3500 as trading conditions remain thin

GBP/USD corrects lower after posting strong gains in the previous week and trades below 1.3500 on Monday. With the action in financial markets turning subdued following the Christmas holiday, however, the pair's losses remain limited.

Gold extends correction from record-high

Gold retreats toward $4,450 from the record-peak it set at $4,550 and loses more than 1% on the day. Growing optimism about a Ukraine-Russia peace agreement and profit-taking ahead of the New Year holiday seem to be causing XAU/USD to push lower.

Bitcoin, Ethereum, and XRP bulls regain strength

Bitcoin, Ethereum, and Ripple record roughly 3% gains on Monday, regaining strength mid-holiday season. Despite thin liquidity in the holiday season, BTC and major altcoins are regaining strength as US President Donald Trump pushes peace talks between Russia and Ukraine. The technical outlook for Bitcoin, Ethereum, and Ripple gradually shifts bullish as selling pressure wanes.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.

GBP/JPY Elliott Wave analysis

GBP/JPY Elliott Wave analysis

GBP/JPY Elliott Wave analysis [Video]

Legal Text

Markets move fast. We move first.

Editor's Picks

Best Brokers in 2025