FX.co ★ Elliott wave analysis of GBP/JPY for November 15, 2022

The ongoing correction in wave 2 has taken a rather complex shape as the X-wave turned out to be an expanded flat formation. This indicates that impatience was in play and we could see a strong decline once minor support at 163 is broken for a quick decline towards 150.09 and likely even closer to 145.76 to complete the ongoing, but complex, corrective pattern in wave 2.

However, once this correction is complete, the consequences of the correction in wave 2 being an expanded flat correction call for an extended wave in wave 3 when it takes over. However, as everything is at the right time, for now, our focus should remain towards the downside towards 150.09 and possibly lower.