FX.co ★ Elliott wave analysis of GBP/JPY for January 21, 2022

GBP/JPY failed to break higher when the possibility was present and the disappointment has pushed GBP/JPY lower to support at 154.50. We could see GBP/JPY move a bit lower to support near 153.57 before the ongoing correction finds its low and a new impulsive rally higher towards our long standing target at 160.54 is seen.

Short-term, we will need a break above minor resistance at 156.23 to ease the downside pressure and indicate the next impulsive rally is in motion.