In below article we will describe GBP/JPY and EUR/JPY charts (on different TFs) using Elliott Wave Theory – you can read about waves and the whole strategy here.

# GBP/JPY

[pullquote align=”left” cite=”” link=”” color=”” class=”” size=””]Get 25USD for free and try Elliott Wave Strategy![/pullquote] If falls from August highs will be treated as first decline wave, then current sideway move should take place during 2B wave of its correction. The wave pattern looks to be fulfilled. Zigzag formed, and c-wave of 2B wave broke above wave A high (after wave A we saw an irregular correction). In case of such assumptions we should see stronger declines inside 3C wave. This is the most likely scenario – so only when it will be negated, I will look for another ones.

# EUR/JPY

I see three scenarios when it comes to this cross. The first one shown above assumes, that decline wave started last year was 1A wave and that the current consolidation (triangle-shaped) is the first wave of 3C wave. In such assumptions we should see – in the nearest future – wave-ii of wave 3C and further declines acceleration.

Second scenario assumes, that current declines is a C wave of irregular correction and the increases started half year ago were a bullish wave. After fulfilling the triangle pattern we should see an upward movement inside wave 3C.

There is also a third scenario – here retracement from the top is 1A wave and the increase from the low is A wave of wave 2B. After ending this movement – testing A wave highs – we should see declines inside 3C wave of higher grade. The minimal target here will be equality between 1A=3C.

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Peter started his trading career in 2000. He spent first six years trading futures and created a system giving a 25% yearly return with limited risk. Since 2006 connected with foreign exchange market, where he trades using trend lines and breakouts, but spends the most of his time on Elliott Wave Theory. Here in Comparic, writes about Price Action and Waves in daily trading.