Elliott wave analysis of GBP/JPY for January 3, 2022

Happy New Year.

GBP/JPY has rallied nicely after putting in a fifth wave failure at 149.64. A fifth wave failure is a sign of impatience and they are often followed by a swift shift in direction, which is also what we have seen for this cross. Short-term we could see a temporary set-back to support near 153.55 and maybe a bit lower, but it's only a temporary set-back as GBP/JPY is headed higher towards the first target at 160.54 and possibly even closer to our second target at 163.39 where we expect to see the top of wave v/ and iii before a new correction in wave iv. However, for now the main focus should be towards the upside and a rally towards 160.54.