GBPJPY Elliott Wave: Why Daily Bias Rules the 4H Chart

This is why we start with the Daily chart.

At the beginning of the week, we shared the GBPJPY Daily analysis, mapping the larger correction and the levels to watch. A few days later, the 4H chart shows how that structure is developing. This is the whole point of top down analysis: the higher timeframe gives you the bias, the lower timeframe shows you how price actually gets there.

What happened at the 0.786 retracement on GBPJPY

Wave 2 (c) pushed into the 0.786 retracement at 217.455 and got rejected there. Before that, price had already tagged the 0.618 zone at 215.768 on the way up. Both levels are marked on the 4H chart, and both did their job as resistance for the corrective rally inside wave 2 (c) of the larger structure.

The internal count into that high is labeled i through v in blue, with wave iii peaking right at the 0.786 line before wave iv pulled back to 216.224 and wave v made the final push. That's a clean five wave move up into resistance, which is exactly what you want to see if the whole thing is a corrective wave 2 rather than a new impulse.

Why the drop from 217.455 matters for the larger count

The impulse down from the 217.455 rejection is what confirms the bigger picture. Cetin's post is direct about it: this decline is unfolding in five waves, and that structure is what confirms the larger degree Wave 1 low near 207.428 still holds.

In Elliott Wave terms, a five wave decline out of a corrective high is the market telling you the trend that produced Wave 1 down is still active. If this were just a random pullback, you wouldn't expect a five wave impulsive structure to follow it. The fact that it's showing up on the 4H chart, right after the rejection at 215.768 and 217.455, is the confirmation.

How the Daily and 4H charts work together here

The Daily chart gives you the big structure: the larger correction, the degree labeling, the invalidation zone. The 4H chart is where you watch that structure actually play out, wave by wave, candle by candle.

That's the discipline behind this whole GBPJPY setup. You don't trade the 4H chart in isolation and hope it lines up with the bigger trend. You start with the Daily bias, in this case a correction that should eventually resolve back toward the Wave 1 low, and then you use the 4H to refine the count and see whether price is behaving the way that bias predicts.

The extension level at 204.695, marked as the 1.272 projection on the chart, sits below the 207.428 Wave 1 low. If the five wave decline from 217.455 keeps developing the way it's labeled, that lower zone becomes the next area to watch as the structure extends.

Daily bias first, 4H confirmation second. That order doesn't change just because the lower timeframe chart looks busy.