GBP/JPY bounces expected to fail below 181.03 – ElliottWave-Forecast

FXStreet (Barcelona) - Daud Bhatti of ElliottWave-Forecast, gives the technical outlook for GBP/JPY using Elliott Wave Analysis.

Key Quotes

“Preferred Elliott Wave view suggests pair formed a secondary peak @ 181.03 and bounces are now expected to hold below this high for continuation lower.”

“Decline from 181.03 peak is taking the form of a double three or ((w))-((x))-((y)) Elliott Wave structure when pair is currently in final leg of wave ((y)).”

“Area between 177.65 – 177.07 is expected to complete the double three structure from 181.03 high resulting in a 3 wave bounce in wave X and lower again. A break below 177.14 would add more conviction to this view.”

“As there is a red arrow on the chart so we are not interested in buying the pair in proposed X wave bounce and expect it to fail in 3, 7 or 11 swings for more downside provided the pivot at 181.03 high remains intact.”

“If pivot at 181.03 high gives up during the bounce, then we could see a double correction in wave ((X)) before the pair turned lower again.”

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