FX.co ★ Elliott wave analysis of GBP/JPY for October 20, 2021

GBP/JPY has already reached the 157.69 level as red sub-wave iii/ has extended. However, we should expect a correction in red sub-wave iv soon towards support near 156.10. As JPY-crosses often form triangles in their fourth waves, we will be looking for a triangle consolidation in red sub-wave iv/ before the final impulsive rally towards the next upside target seen at 160.54.

As GBP/JPY already has extended beyond the first upside target at 156.10 in red sub-wave iii/ we might even see wave v/ extend higher to 163.39, but only time will tell.