Elliott Wave View: GBPJPY Recovery Nearing Completion

Short term Elliott Wave View on GBPJPY shows the decline to August 12, 2019 low (126.51) ended wave 3. From there, pair is doing the recovery in wave 4 with the internal unfolding as a potential Elliott Wave Zigzag structure. This suggests the current rally takes the form a corrective structure and the bias remains to the downside. Up from 126.5 low, wave ((a)) unfolded as a leading diagonal structure where wave (i) ended at 127.52 high. Wave (ii) ended at 126.75 low, wave ( iii ) ended at 129.22 high, wave (iv) ended at 127.41 low and wave (v) ended at 129.57 high.

Down from there, wave ((b)) pullback unfolded in a lesser degree flat structure where wave (a) ended at 128.91 low. Wave (b) bounce ended at 129.54 high and wave (c) ended at 128.21 low. Above from there, wave ((c)) remains in progress towards 131.31-133.22 100%-161.8% Fibonacci extension area of ((a))-((b)). This rally should also end wave 4 in a larger degree. Sellers are expected to appear in that area for further downside or a 3 waves pullback at least. We don’t like buying the pair and continue to expect the rally to fail in the sequence of 3, 7, or 11 swings.