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The GBPJPY structure shows a corrective bearish trend consisting of minor sub-waves A-B-C.
Wave A is a 5-wave bearish impulse, whereas wave B is a triple zigzag consisting of primary sub-waves ⓦ-ⓧ-ⓨ-ⓧ-ⓩ.The impulse wave C is currently under development.
If the 4th minute degree wave is completed as an (a)-(b)-(c) correction, then the markets can be expected to move down in wave ⓥ.
The forthcoming decline can reach the 123.87 area, the previous swing low.
If, however, the 4th-minute degree wave isn’t completed yet, we can expect the correction to take a complex (w)-(x)-(y) formation. This should allow the correction to last longer as waves b and c of wave (y) aren’t completed yet.
Thus, in the short term, we expect a slight decline in wave b near 133.28. At that level, wave b will be at 78.6% of wave a.
This should be followed by a bullish leg in wave c near 135.80, and perhaps a tad higher.
Only then are bears expected to increase their bets in wave ⓥ.
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