GBP/JPY Elliott Wave
Since our last analysis, the GBP/JPY pair was trading in an upward move, like we expected, developing impulsive 3 wave (coloured blue) of the bigger (3) wave (coloured green). During the yesterday's European and New York sessions we could observe an ascending movement from 123.80 towards the 124.87 level. At the moment we are close to 161.8% retracement, and we need to be prepared for entering short position when 4 wave (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 4 retraces 100% of the wave 2, we can define the potential targets with measuring the 2 wave, with Take Profit at 123.70 (100% of wave 2). To reduce the risk, we can use support point at 125.50 as Stop Loss.
Support and Resistance
(S3) 123.30 (S2) 123.76 (S1) 124.04 (PP) 124.50 (R1) 124.96 (R2) 125.24 (R3) 125.70
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 125.20 with Stop Loss 125.50 and Take Profit 123.70 are recommended.