GBP/JPY Elliott Wave
Last week the GBP/JPY pair was developing 1 and 2 wave (coloured blue). Presently we can observe the development of the impulsive 3 wave (coloured blue) of the bigger C wave (coloured green). During the Friday's Asian session the GBP/JPY pair dropped towards the 129.65 level. Therefore during the European and New York session we could observe the continuation of the bearish mood and price under 129.00 level.Today during the Asian session the price started a downward movement testing the 128.35 support level. Presently we can observe the price above 128.80 level and we are expecting to see it under the 126.35 level soon. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (131.80-129.06-130.70) and Take Profit at 126.35 (161.8% of wave 1). For Stop Loss the resistance level at 129.50 can be used.

Support and Resistance levels
(S3) 128.13 (S2) 128.57 (S1) 128.84 (PP) 129.27 (R1) 129.71 (R2) 129.98 (R3) 130.41

Trading Forecast
Proceeding from Elliott Wave Rules, this week the trend is expected to begin the downward movement. That is why Short positions at level 128.50 with Stop Loss at 129.50 and Take Profit at 126.35 are recommended.