GBP/JPY Elliott Wave
The GBP/JPY pair was trading in a downward move yesterday developing impulsive 3 wave (coloured blue) of the bigger wave (1) (coloured green). During the European session we could observe descending movement toward the 124.00 level. Therefore during the early New York session we could observe continuation of the bearish mood and price reached 123.53. We can consider this move as end of the 3 wave (coloured blue). The GBP/JPY finish Monday's trading session around the 124.00 level.
Today during the Asian session we could observe price pushing higher and reaching the 124.40 level (end of the corrective 4 wave). Presently we are at the start of the 5 wave and we are expecting to see price under 123.45 today. In accordance with our wave rules and taking into account that the wave 5 retraces 100% of the wave 1, we can define the potential targets with measuring 1 wave (coloured blue) with Take Profit 1 at 123.46(100% of wave 1) and Take Profit 2 at 122.85(161.8% of wave 1). Invalidation Point at 124.43 can be used as a Stop Loss point. Also it is necessary to monitor the UK Public Sector Net Borrowing and Inflation Report Hearings data that can change the rate of the pair.
Support and Resistance Levels:
(S3) 122.37 (S2) 123.16 (S1) 123.65 (PP) 124.43 (R1) 125.22 (R2) 125.71 (R3) 126.49
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 123.70 with Stop Loss at 124.40 Take Profit 1 at 123.46 and Take Profit 2 at 122.85 are recommended.
The material has been provided by Instaforex Company - instaforex.com

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