FX.co ★ Elliott wave analysis of GBP/JPY for July 26, 2021

The double zig-zag correction in wave iv/ completed between the 23.6% and 38.2% corrective area, which is within the normal target-zone we would expect to find the end of the wave four correction. We are currently looking for a break above resistance at 152.19. A break above resistance at 153. 49 will confirm that wave iv/ has completed and wave v/ towards the long-standing target at 159.75 is in motion. This should complete wave iii and set the stage for a more prolonged correction in wave iv. Now, our focus should remain on a break above resistance at 152.19 as a good indication that wave iv/ has completed and wave v/ of iii is in motion towards 159.75.

Trading recommendation:

Buy a break above 152.19 for a rally towards 159.75