FX.co ★ Elliott wave analysis of GBP/JPY for January 6, 2022

GBP/JPY is already testing the former top of wave iii/ at 158.21 and we could see a temporary set-back close to 156.00 before the next rally higher towards the 160.54 target and maybe even closer to our secondary target at 163.39 where we expect wave v/ of iii to complete and set the stage for another time consuming correction in wave iv.

However, for now our focus should remain towards the upside and a test of our first target at 160.54.