Short Term Elliott wave view in GBPJPY suggests that the decline to 142.77 ended blue wave (2). Up from there, the pair rallies as an impulse and ended red wave A at 149.49. Red wave B pullback is currently in progress to correct cycle from Oct 26 low (142.77) before the next leg higher. We can see internals of wave A unfolded in 5 waves where black wave ((i)) ended at 144.39, Black wave ((ii)) ended at 143.19, Black wave ((iii)) ended at 147.77, black wave ((iv)) ended at 146.83, and black wave ((v)) ended at 149.49
Subdivision of black wave ((iii)) and ((v)) further reveals another 5 waves of a lesser degree (blue color), fulfilling the rule of an impulse wave. This rally from 142.77 low to 149.49 high completed red wave A of a larger degree and ended cycle from Oct 26 low. Pair should now pullback in red wave B to correct this cycle in the sequence of 3, 7, or 11 swing before the rally resumes, provided that pivot at 142.77 low stays intact.
We don’t like selling the pullback and expect buyers to appear again when the red wave B pullback is complete in 3-7-11 swing.
We have a bearish view bias on GBPJPY. If it breaks out of its horizontal swing low support at 146.12, it could signal a further move down. Ichimoku cloud shows signs of bearish pressure which contributes to our bearish bias. Here’s our idea!