The bulls took control of GBP JPY in the middle of October. The recent rally began from 168 and now, less than a month later, the pair is trading around 184. Are the bulls getting exhausted or the uptrend is set to continue? As always, the Elliott Wave Principle will help us answer this question. It postulates, that every five-wave impulse is followed by a correction in the opposite direction. There is one such impulse on the chart of GBPJPY below.
However, it appears that the impulsive sequence is not over yet, because its fifth wave looks incomplete. If this is the correct count, GBP JPY should be expected to form a top, probably in the zone of 185. Once this area is reached we will have to prepare for a reversal.
