GBPJPY - SELL IDEA

Elliott Wave analysis on GBPJPY points to a SHORT opportunity as the pair completes what appears to be a corrective wave (b) and may be embarking on a bearish wave (c). This is reinforced by the recent failure to maintain upward momentum beyond the 0.774 Fibonacci retracement level of the previous decline.

If the bearish wave (c) unfolds as anticipated, we could see it extend to the 1.0 or even the 1.618 Fibonacci extension of wave (a), offering clear targets for bearish entries. The current geopolitical landscape and economic releases should be monitored closely, as they could induce volatility and affect the velocity of the expected move.

A strategy could be to enter a SHORT position on confirmation of the trend reversal, with a stop-loss above the peak of wave (b) to manage risk. Targets could be set at the 1.0 Fibonacci extension for initial profit-taking, with the potential to extend to the 1.618 level if the momentum sustains.

As with all trades, it's vital to adapt to new market information and manage positions accordingly.

Trade closed: target reached