The pair has been consolidating since completing a 5-wave impulsive move terminating in 164.096.
Prices have retraced almost 61.8% of the prior up swing which is a typically good area of support.
The consolidation have taken the form of 'combinations' W-X-Y wave patterns.
The final consolidation pattern is taking a form of a Triangle terminating at 158.578.
A break of the B-D trendline can trigger a long position.
Terminus of Wave A of the triangle at 158.441 (158.442 less 1 bid) can act as a SL for any long trades.
Prices have retraced almost 61.8% of the prior up swing which is a typically good area of support.
The consolidation have taken the form of 'combinations' W-X-Y wave patterns.
The final consolidation pattern is taking a form of a Triangle terminating at 158.578.
A break of the B-D trendline can trigger a long position.
Terminus of Wave A of the triangle at 158.441 (158.442 less 1 bid) can act as a SL for any long trades.
Update 1 (28/03/16):
Since the last post, GBPJPY has broken out of the Wave Y 'Triangle' forecast consolidation pattern.
In view of dynamic market movements, I have worked out preferred and alternative scenarios.
(1) Preferred Wave Analysis
If prices break through top of Wave X at 161.783, the next target of 164.09 will be very achievable.
(2) 1st Alternative Wave Analysis
If prices stopped and reverse near 161.50, the 'Triangle' could extend itself to create uniformity with Wave W.
This extension could take at least a few days before completing.
SL of 158.441 remains unchanged in this scenario.