GBPJPY Anticipated to Ascend in a Five-Wave Impulse Pattern

The GBPJPY currency pair is currently exhibiting a bullish trend that could signal a rising trajectory in the forex market. Analysts are observing what appears to be a five-wave impulse structure, based on the Elliott Wave theory, originating from the lows recorded on December 14, 2023. The initial surge, known as wave (1), saw its peak at 188.93, followed by a retracement dubbed wave (2) that found support at 185.22. This pullback is characterized as a zigzag pattern, a typical formation in the Elliott Wave framework.

Dissecting the Wave Structure

The decline from the top of wave (1) included three sub-waves: Wave A concluded at 187.1, followed by wave B at 188.56, and the final push downwards in wave C landed at 185.22, completing the second wave. The currency pair then entered a powerful rally forming wave (3). The ascent from wave (2)'s base had minor waves ((i)) cresting at 187.73, with a minor correction in wave ((ii)) down to 186.15.

The momentum continued upwards with wave (i) closing at 186.78, and after a slight dip in wave (ii) to 186.16, wave (iii) reached new heights at 188.48. Subsequently, wave (iv) saw a slight pullback ending at 188.21 before wave (v) surged to finish at 188.86, wrapping up wave ((iii)). Following another dip in wave ((iv)) to 187.84, the pair has embarked on another climb in wave ((v)). Looking at short-term expectations, as long as the support level of 185.22 remains unbroken, upcoming declines should find resilience in 3, 7, or 11 swings, paving the way for further gains.

Technical Outlook for GBPJPY

Forecasters anticipate that the GBPJPY pair will continue its upward trajectory as part of an impulsive wave pattern. This bullish outlook is grounded as long as the pair sustains above the pivotal low of 185.22, suggesting analysts hold a positive bias with expectations for continued appreciation. Traders could interpret these wave patterns as indicators for potential entry and exit points within the forex market.

GBPJPY, ElliottWave, Forex