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GBPJPY Elliott Wave Analysis – Trading Lounge

British Pound/Japanese Yen (GBPJPY) Day Chart

GBPJPY Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Orange Wave 3
• Position: Navy Blue Wave 3
• Direction Next Higher Degree: Orange Wave 4
• Details: Orange Wave 2 appears completed, and Orange Wave 3 is currently in play.
• Invalidation Level: 192.033

Analysis Overview

The GBPJPY daily chart indicates a bearish trend with an impulsive wave structure. The market is currently moving within Orange Wave 3, which signifies strong downward momentum within the broader trend. The previous Orange Wave 2 appears completed, and the transition into Orange Wave 3 suggests continued selling pressure.

The current position within Navy Blue Wave 3 further reinforces the bearish outlook. The next higher-degree wave to watch is Orange Wave 4, expected to develop after the ongoing Orange Wave 3 completes. This structure indicates that the market remains in a declining phase, with further downside potential before a possible corrective movement.

The invalidation level is set at 192.033, acting as a key reference point. If the price moves above this level, the current wave count would be invalidated, necessitating a reassessment of the market structure.

Conclusion

GBPJPY remains in a strong bearish phase, with Orange Wave 3 unfolding after the completion of Orange Wave 2. The market is in a downward trend, and traders should monitor price movements and key levels to identify potential trend changes or confirmations. The completion of Orange Wave 3 will determine when Orange Wave 4 begins, making it crucial to track the market’s development closely.

British Pound/Japanese Yen (GBPJPY) 4-Hour Chart

GBPJPY Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Orange Wave 3
• Position: Navy Blue Wave 3
• Direction Next Higher Degree: Orange Wave 4
• Details: Orange Wave 2 appears completed, and Orange Wave 3 is now in play.
• Invalidation Level: 192.033

Analysis Overview

The GBPJPY 4-hour chart analysis highlights a bearish trend, with the market currently in an impulsive mode. The structure is identified as Orange Wave 3, which is part of a broader downward movement within Navy Blue Wave 3. This suggests that the market is experiencing a strong downward phase, characteristic of an impulsive wave structure. The next anticipated movement at a higher degree is Orange Wave 4, expected to develop once Orange Wave 3 completes.

The analysis indicates that Orange Wave 2 has likely concluded, and the market is now progressing through Orange Wave 3. This wave is expected to show strong downward momentum, aligning with the impulsive nature of the trend. Traders should closely monitor the development of Orange Wave 3, as its completion will signal the potential start of Orange Wave 4, which may introduce temporary pullbacks or consolidation before the broader trend resumes.

A key level to watch is the wave cancellation invalidation level at 192.033. If the price moves above this level, it would invalidate the current wave count, requiring a reassessment of the market structure. This level acts as a crucial resistance, and its breach could indicate a potential shift in the trend or wave pattern changes.

Conclusion

GBPJPY remains in a bearish trend, with Orange Wave 3 unfolding after the completion of Orange Wave 2. This impulsive movement within Navy Blue Wave 3 indicates further downside potential before a corrective phase begins. The next significant move to monitor is Orange Wave 4, expected after Orange Wave 3 completes. Traders should pay close attention to the price movements and key levels, as they will provide critical insights into market direction and trading opportunities.

Technical Analyst : Malik Awais

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