The Great Britain Pound-Japanese Yen cross (GBPJPY) has rallying for the past 4 years. We believe that a top is close by.
The GBPJPY is close to completing its 5-waves rally from the 2011 low, similar to the Japanese Yen chart shown here last week.
We see that the GBPJPY is on its fifth and final wave of its rally from the 2011 low and a reversal could be just ahead. This current move is likely to continue on higher towards 194.912-195.353 next as long as the 188.983 low is intact.
Do note that the minimum requirement of its final leg up is already completed following a move above 191.965.
Therefore, bulls would have to be vigilant in the coming days and keep tight stops.
If prices do fall below 188.983, then the first level of correction to look out for is the fourth wave extreme of one lesser degree at 174.884.
For now, higher prices are likely next. (Read Report)
Source : CIMB Research