FX.co ★ Elliott wave analysis of GBP/JPY for April 22, 2021

GBP/JPY is currently testing short-term support at 150.46. It's okay if this support is broken slightly, but we can't allow a break below support at 149.86 as the will reinstate red wave iv/ as still unfolding. We don't favor support at 149.86 as being broken, but rather that a bottom is found near 150.46 for a break above minor resistance at 150.97 indicating that the next impulsive rally towards 156.66 is unfolding.

Trading recommendation:

Buy GBP near 150.46 and place your stop at 149.80 for the next impulsive rally higher towards 153.42 and 156.66