The GBPJPY structure shows a bullish triple zigzag consisting of waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. The first three parts of the primary degree pattern seem fully complete.
At the time of writing, we see the formation of a bearish intervening wave Ⓧ. It is expected to take the form of a simple zigzag (A)-(B)-(C) of the intermediate degree. With sub-waves (A) and (B) completed we expect impulse (C) to weaken prices further.
The decline in the bearish impulse can reach the 130.97 area. At this level, wave 5 could reach 61.8% of the impulse wave (A).
A reversal at the said base could lead the pair up to complete wave Ⓩ. The upside is expected to take the form of a simple or double zigzag. It could end near the 139.69 high recorded by wave Ⓨ.
An alternative scenario suggests that the primary wave Ⓧ is complete.
This allows us to assume that the recent upside in wave Ⓩ is the final zigzag of the complex pattern. It consists of intermediate waves (A)-(B)-(C) zigzag, which is currently under development.
Intermediate wave (A) is taking the form of a leading diagonal. It is expected to end above the 135.93 area, which is marked by minor wave 3.
With wave (A) complete, we expect a slight decline in correction wave (B) that could be followed by impulse wave (C). Wave (C) could end near 139.69, near the high formed by wave Ⓨ.