USD/JPY Elliott Wave
For the last few days the USD/JPY pair was trading in a downward movement, corrective wave (C) (coloured green) of the bigger wave (4) (coloured red) was developing. Yesterday after the bearish mood in the Asian session we could observe strong ascending movement from 79.80 towards the 80.39 level when European session stats. Therefore, during the early New York session the USD/JPY pair did not manage to hold this level and the price started pushing lower reaching a new daily low at 79.75 level. At the moment this major pair is trading around 79.85 level and we are expecting to see the price around 81.80 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 81.81 (100% of wave 1). To reduce the risk, we can use support at 79.50 level as stop loss.

Support and Resistance
(S3) 79.38 (S2) 79.64 (S1) 79.79 (PP) 80.05 (R1) 80.31 (R2) 80.46 (R3) 80.72

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 80.10 with stop loss 79.50 and take profit at 81.81 are recommended.