GBPJPY Elliott Wave: Downside Has Resumed

Short Term GBPJPY Elliott Wave view suggests the decline from 5/10 peak is unfolding as a double three Elliott Wave structure where Minor wave W ended at 143.33 and Minor wave X ended at 145.45. The subdivision of Minor wave W unfolded as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 145.61, Minute wave ((b)) ended at 147.12, and Minute wave ((c)) of W ended at 143.33. After ending Minor wave X at 145.45, pair has since resumed lower and broken below 143.33. This creates a bearish 5 swing incomplete sequence from 5/10 peak and favors more downside in the near term.

GBPJPY Elliott Wave structure of the decline from 145.45 looks to be in a zigzag where Minute wave ((a)) ended at 142.11 and Minute wave ((b)) is proposed complete at 143.09 as a Flat Elliott Wave structure. Pair has broken below 141.81 irregular Minutte wave (b) which suggests that Minute wave ((c)) lower has already started. Near term, while bounces stay below 143.09 in the first degree, but more importantly below 5/25 high (145.45), expect pair to continue lower towards 139.51 – 140.65 area before cycle from 5/10 peak ends. Buyers should then appear from the aforementioned area for an extension higher or at least a 3 waves bounce. We do not like selling the proposed move to the downside.