Hello traders! Today we we will talk about GBPJPY and XXXJPY pairs in general, in which we see pretty interesting price action and clear wave structure.
As you can see most of XXX/JPY pairs are turning sharply down and the main reason is a recovery on 10Y US treasury notes. We decided to share GBPJPY chart that is turning sharply and impulsively down, clearly within a five-wave bearish cycle which in Elliott Wave theory suggests a top, at least temporary one.
Five-wave cycle from the highs can be actually approaching the end and this is barely first leg A/1 from the highs. In Elliott Wave theory, after every five waves, we can expect an a-b-c pullback, so be aware of bounce and recovery around important Fibonacci cluster target area and 160.0 psychological level. If that will be the case, then this would be an indication for an Elliott wave a-b-c corrective rally into a wave B/2 that can retest 163-165 resistance area before we will see a bearish continuation for wave C/3.
Check more of our Elliott Wave analysis in this free video where we talk about EURUSD, AUDUSD, DAX, GOLD and CRUDE OIL. CLICK HERE