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Elliott wave analysis of GBP/JPY for May 27, 2021

analytics60af321e33eb9.jpg

A minor top-formation is developing in GBP/JPY. A corrective decline is expected in the coming days/weeks. As we saw a quick, simple, and very deep correction in wave ii/ we should expect a complex small correction in wave iv/ to the 23.6% at 150.10 and if broken we could see wave iv/ move closer to the 38.2% corrective target at 146.84 - less likely though.

A break below minor support at 153.14 will confirm that wave iv/ is underway for a corrective decline to 150.10 and maybe slightly lower to 149.41. Yet, the drop to the 38.2% corrective target at 146.80 seems less possible.

Trading recommendation:

Profit should have been taken near 154.80 peak if not then take profit here or upon a break below 153.14 for a decline to 150.10 where a new buying opportunity is expected for the next impulsive rally in wave v/

The material has been provided by InstaForex Company - www.instaforex.com