GBP/JPY Elliott Wave
Since out last analysis the GBP/JPY pair was trading in a downward move, corrective wave (2) (coloured pink) of the bigger 5 wave (coloured blue) was developing. Yesterday during the Asian session we could observe ascending movement toward the 132.89 level and we can consider this move as the end of the impulsive (1) wave (coloured pink). Therefore, during the European and New York sessions, when development of the 2 wave started, this exotic currency dropped below 132.10 level. At the moment the GBP/JPY pair is trading around 132.10 level and we are expecting to see the price higher today when development of the impulsive (3) wave started. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 133.98 (161.8% of wave 1). To reduce the risk, we can use invalidation at 131.75 level as stop loss.
Support and Resistance
(S3) 131.04 (S2) 131.54 (S1) 131.89 (PP) 132.39 (R1) 132.74 (R2) 133.24 (R3) 133.59
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 132.10 with stop loss 131.75 and take profit at 133.98 are recommended.