GBPJPY - BUY IDEA

In our latest review of the GBPJPY on the 3-hour chart, we've identified a compelling setup for a potential long position based on Elliott Wave theory. The chart displays a sequence that suggests we are nearing the end of wave (4), and are about to embark on wave (5), which is expected to be an impulse wave leading to new highs.

After a significant pullback in wave (4), the pair appears to be stabilizing, presenting an optimal entry point for a long position. The Fibonacci retracement levels from the top of wave (3) to the bottom of wave (4) suggest substantial support around current prices, with wave (5) projected to reach at least the 1.618 extension level at 201.587.

For those considering entering this trade, now may be a prudent time to engage, with a stop-loss order set below the recent low of wave (4) to mitigate risk. This position offers a promising risk-reward ratio, considering the upward potential indicated by the Elliott Wave pattern.

As always, it's crucial to monitor the trade closely and adjust your strategy based on new market information. The clarity of the wave patterns provides a strong basis for this bullish outlook, but maintaining sound risk management practices is essential.