USD/JPY Elliott Wave
Yesterday the USD/JPY pair was trading in an upward move; impulsive 3 wave (coloured blue) of the bigger (A) wave (coloured green) was developing. During the Thursday's European session we could observe ascending movement towards the 80.95 level. Therefore, during the New York session the USD/JPY pair continued trading in a bullish mood reaching 81.45 level and we can consider this move as the end of the impulsive 3 wave (coloured blue). Today this major currency pair is developing corrective 4 wave (coloured blue) and we are expecting to see the price at 80.60 level soon. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 80.60 (38.2% of wave 3). To reduce the risk, we can use resistance at invalidation at 81.55 level as stop loss.

Support and Resistance
(S3) 80.70 (S2) 80.80 (S1) 80.91 (PP) 81.01 (R1) 81.12 (R2) 81.22 (R3) 81.33

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 81.00 with stop loss 81.55 and take profit at 80.60 are recommended.