GBP/JPY: Buying the dips at the blue box area

Elliott Wave Forecast Team ElliottWave-Forecast.com

In this technical article we’re going to take a quick look at the Elliott Wave charts of GBP/JPY Forex pair, published in members area of the website. As our members know, GBP/JPY has recently given us daily correction. The pair reached our target zone and found buyers right at the Equal Legs zone ( Blue Box Area) . In further text we’re going to explain the Elliott Wave pattern and trading setup.

GBP/JPY daily update 08.03.2024

The pair is giving a daily correction, which is forming as a Elliott Wave Double Three pattern. The pull back looks incomplete at the moment. Our analysis forecasts more short term weakness in GBPJPY toward the 186.879-179.111 area ( blue box).

Despite the expected extension lower, we advise against selling GBP/JPY against the main bullish trend. Once the pair reaches this blue box area, we expect it to attract buyers. We can see either rally towards new highs or a corrective bounce in three waves at least. Once the bounce reaches the 50% Fibonacci retracement level against the connector high -((X)) black, we’ll secure our position by moving the stop-loss to breakeven. To safeguard our trade, we’ll closely monitor for any break below the marked invalidation level :179.111 .

A quick reminder:

Our charts are designed for simplicity and ease of trading:

Red bearish stamp + blue box = Selling Setup.
Green bullish stamp + blue box = Buying Setup.
Charts with Black stamps are deemed non-tradable.

GBP/JPY daily update 08.03.2024

The pair found buyers within the Blue Box area as expected. We got a nice rally from our buying zone. The bounce has exceeded the 50% Fibonacci retracement level against the connector peak. As a result, traders who entered long positions are now enjoying risk-free profits. With the price holding above the 180.32 low, we expect to see more strength in another leg up against the 208.12 peak at least.

Please bear in mind that the market is constantly evolving. The outlook presented here may have shifted since.

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

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