Short term Elliott Wave view in GBPJPY suggest that it can rally higher towards 165.99 – 168.15 area to end wave 5 of (5) before start correcting lower in 3, 7 or 11 swings, while dips remain above 164.00 low of wave 4. The pair is currently within wave (5) of impulse, started from 3/29/2022 low. Minor degree wave 1 of (5) ended at 161.306 high and wave 2 ended at 160.48 low. Then it resumed higher in wave 3 in which, minute degree wave ((i)) ended at 162.279 and wave ((ii)) ended at 161.38 low. Wave ((iii)) rallied higher and favored ended at 164.078 high and wave ((iv)) ended at 163.38 low. Finally, wave ((v)) ended at 164.882 high, which completed wave 3 in minor degree. Below there, it ended wave 4 at 164.00 low.
Currently, wave 5 is in progress within intermediate degree wave (5) and expect short term strength towards 165.99 to finish the impulse sequence. After finishing impulse, it expect to pull back in 3, 7 or 11 swings in higher degree to correct the cycle up from December-2021 low. Short term, the pair showing momentum divergence, which suggest that chasing at current level is risky as it may end soon.
