GBPJPY Shows 5 wave impulse up from 2/17 Lows
Firstly in the near term the GBPJPY pair shows 5 waves up from the 2/17 lows. The dip to 139.61 corrected the cycle up from the 2/7 lows. Secondly we favor seeing the pair ending this initial bounce from there in the 142.05 area. That per the 1 hour chart from the Mid Day NY update that is shown below. Afterward we expect a smaller degree dip in 3, 7 or 11 swings to correct the cycle up from the 139.61 lows from 2/17. The analysis continues below the chart.
GBPJPY 1 Hour Chart
One way to forecast a fifth wave target with Elliott Wave is from the .618% extension area of the first & third waves combined measured against the high in the fourth wave.
The second way is wave five may be equal in length to the wave one. Simply either count the points or pips in the first wave or draw a line from the wave cycle peak preceding the beginning of the wave one to the ending of the wave one, then highlight it & drag the top of the line to the end of the wave four corrective cycle peak & check the price where the end of the line projects to give the wave five target as being equal.
In conclusion. As previously mentioned. The near term the GBPJPY pair shows 5 waves up from the 2/17 lows. The dip to 139.61 corrected the cycle up from the 2/7 lows. We favor seeing the pair ending this initial bounce from there in the 142.05 area. We expect a smaller degree dip in 3, 7 or 11 swings to correct the cycle up from the 139.61 lows from 2/17. Nearest term while dips continue to remain above 139.61 expect the pair develops a rally again with the trend back higher initially toward the equal legs-1.236 extension area of the larger three swings up from the 2/7 lows which is in the 143.91-144.92 area.
Thanks for looking. Come to the website and if you like take a trial subscription. See if we can be of help in your trading. Kind regards & good luck. Lewis Jones of the elliottwave-forecast.com team.
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