USD/JPY Elliott Wave
Last week the USD/JPY pair was trading in a downward move, impulsive 3 wave (coloured blue) of the bigger wave (A) (coloured green) was developing. During the Friday's Asian and European sessions we could observe descending movement from 79.60 towards the 79.07 level and we can consider this move as the end of the impulsive (3) wave (coloured purple). Therefore, during the New York session the USD/JPY pair did not manage to hold this level and the price retraced back to 79.53 level. At the moment this major pair is trading around 79.40 level and we are expecting to see the price around 79.00 level today. 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 79.06 (78.6% of wave 1). To reduce the risk, we can use invalidation at 79.80 level as stop loss.

Support and Resistance
(S3) 78.84 (S2) 79.05 (S1) 79.17 (PP) 79.38 (R1) 79.59 (R2) 79.71 (R3) 79.92

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short  positions at level 79.40 with stop loss 79.80 and take profit at 79.06 are recommended.