GBP/JPY Elliott Wave 
Last week the GBP/JPY pair was trading in an upward move, impulsive (3) wave (coloued pink) of the bigger 3 wave (coloured blue) was developing. Yesterday during the Asian session we could observe descending movement from 132.44 towards the 131.12 level. Therefore, during the European and New York sessions this exotic currency started trading in a sideways move between 131.12 and 131.69 level. At the moment the GBP/JPY pair is trading around 131.80 level and we are expecting to see continuation of the bearish mood today. 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 130.85 (38.2% of wave 3). To reduce the risk, we can use resistance at 132.44 level as stop loss.

Support and Resistance
(S3) 130.37 (S2) 130.88 (S1) 131.19 (PP) 131.69 (R1) 132.20 (R2) 132.51 (R3) 133.01

Trading Forecast
Proceeding from Elliott Wave rules today, the price is expected to begin the downward movement. That is why short positions at level 131.70 with stop loss 132.44 and take profit at 130.85 are recommended.