GBP/JPY Elliott Wave
Yesterday the GBP/JPY pair was trading in a upward movement. During the European session we could observe the ascending movement towards the 129.10 level. Therefore during the New York session we could observe price above 50 EMA resistance level.Today during the early Asian session price find resistance level at 100EMA around 129.50 level and we could observe the start of the downward movement. Presently the GBP/JPY pair was developing 3 wave (coloured blue). 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) 127.95 (S2) 128.37 (S1) 128.63 (PP) 129.05 (R1) 129.47 (R2) 129.73 (R3) 130.15

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.