GBP/JPY Elliott Wave
Since our last analysis the GBP/JPY pair was trading in a downward move developing last corrective wave C (coloured blue) of the bigger (2) wave (coloured green). From early European till the second half of the New York session this exotic pair was trading in a descending movement towards the 122.15 level. Today the GBP/JPY pair tried to push higher but after testing resistance level around 122.60, the price fell back to the 122.00 level and we can consider this move as the end of the (2) wave. At the moment this exotic currency finished developing of the C wave (coloured blue) and we can expect to see price higher for the next few days. 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 (120.81-123.70-121.95) with Take Profit 1 at 124.95 (100% of wave 1) and Take Profit 2 at 126.77 (161.8% of wave 1). Invalidation point at 120.81 can be used as Stop Loss.
Support and Resistance
(S3) 121.75 (S2) 122.06 (S1) 122.25 (PP) 122.57 (R1) 122.88 (R2) 123.07 (R3) 123.39
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 122.65 with Stop Loss 120.81, Take Profit 1 124.95 and Take Profit 2 126.77 are recommended.