GBPJPY tested a strong upside wedge resistance of 172 and got rejected for another swing lower in what seems to be a fourth wave pullback before a final fifth wave swing higher to 174.
Now only a confirmed break below 160 will lead to a test of the rising wedge support 158 line level. Any possible break below 158 will completely invalidate the upside count at this stage,
Any short-term confirmed break above 163 would lead to a bullish swing higher to 174, for which we give a little more weight than to a downside break of 160.
Short-term this could be a perfect low-risk long trade for a final swing higher in the fifth wave.
You can take the long trade here with the stop loss just below 160 as we see a higher probability of an extension of the swing upside fifth wave trade. By placing this trade your RR ratio is 4.6. In the case, you are stopped you can reverse your trade to short, especially in the case of a confirmed break below 158.
