GBP/JPY Elliott Wave
Since our last analysis the GBP/JPY pair was trading in a downward move like we expected, corrective 4 wave (coloured blue) of the bigger (3) wave (coloured green) was developing. During the Asian and European sessions we could observe descending movement from 132.16 toward the 131.46 level. Therefore, during the early New York session this exotic currency started pushing higher reaching a new daily high at 132.40 level. At the moment the GBP/JPY pair is trading around 132.18 and we are expecting to see the price below 131.00 level 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 130.08 (38.2% of wave 3). To reduce the risk, we can use invalidation at 133.00 level as stop loss.
Support and Resistance
(S3) 130.83 (S2) 131.21 (S1) 131.77 (PP) 132.15 (R1) 132.71 (R2) 133.09 (R3) 133.65
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 132.10 with stop loss 133.00 and take profit at 130.08 are recommended.