FX.co ★ Elliott wave analysis of GBP/JPY for July 13, 2021

GBP/JPY complete a double zig-zag correction in wave iv/ that began with the peak of wave iii/ at 156.06 and completed with the low at 150.67 and wave v/ of iii is now in motion for a rally towards 159.75 and maybe even closer to 162.54 before wave v/ and iii is complete and a complex wave iv correction takes over. However, for now we should stay focused towards the upside as an impulsive rally in wave v/ is expected towards 159.75 and maybe even higher.

Trading recommendation:

Buy GBP for a rally towards 159.75 and place your stop just below 150.67