FX.co ★ Elliott wave analysis of GBP/JPY for January 5, 2022

There was no time for a more substantial correction before GBP/JPY continued higher towards the first wave iii target at 160.54. However, we see the potential of a continuation towards our secondary target at 163.39 before wave iii finally finds its top and start a new prolonged correction in wave iv.

Short-term we see support at 156.00 which ideally will be able to protect the downside for the rally towards 160.54 and possibly higher.