GBP/JPY Elliott Wave
Yesterday the GBP/JPY pair was trading in a downward move developing corrective wave A (coloured blue) of the bigger wave (2) (coloured green). During the Asian and European sessions we could observe a strong descending movement from 123.45 towards the 122.43 level and we can consider this move as the end of the corrective wave A. Therefore, during the yesterday’s New York session and today's Asian session this exotic currency pair started trading in a sideways move developing wave B (coloured blue) and we are expecting to see the price under 122.00 soon. In accordance with our wave rules and taking into account that the wave C retraces 100% of the wave A, we can define the potential targets with Fibonacci extensions (123.70-122.43-122.98) with Take Profit at 121.75 (100% of wave A). Resistance at 123.05 can be used as Stop Loss.
Support and Resistance
(S3) 121.85 (S2) 122.27 (S1) 122.54 (PP) 122.54 (R1) 123.39 (R2) 123.66 (R3) 124.09
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 122.55 with Stop Loss 123.05 and Take Profit at 121.75 are recommended.