GBPJPY Trade Idea - Elliott Wave
Let’s discuss the price chart of the GBPJPY currency pair based on the 480 minute timeframe.
From the Elliott Wave perspective, GBPJPY has completed a 5 wave impulse up of two degrees, specifically, Minor Wave 5 and Intermediate Wave (5). The price has recently broken below the bullish channel of Minor Wave 5. Most momentum oscillators are also forming a bearish divergence pattern.
From the Hurst Cycles perspective, the composite model line which measures the combined cyclical pressure, topped on April 18 (red vertical line), and is projected to form a bottom on June 28.
Based on this, we can expect prices to head lower to at least the 38% Fibonacci retracement level of the prior impulse. This will serve as the first area of support, but price should move beyond this level at some point thereafter to test the 50% Fib retracement level.
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From the Elliott Wave perspective, GBPJPY has completed a 5 wave impulse up of two degrees, specifically, Minor Wave 5 and Intermediate Wave (5). The price has recently broken below the bullish channel of Minor Wave 5. Most momentum oscillators are also forming a bearish divergence pattern.
From the Hurst Cycles perspective, the composite model line which measures the combined cyclical pressure, topped on April 18 (red vertical line), and is projected to form a bottom on June 28.
Based on this, we can expect prices to head lower to at least the 38% Fibonacci retracement level of the prior impulse. This will serve as the first area of support, but price should move beyond this level at some point thereafter to test the 50% Fib retracement level.
If you find this analysis useful, make sure to press the “Like” button and Follow us.