GBP/JPY Elliott Wave

GBP/JPY Elliott Wave
The GBP/JPY pair finished corrective 4 wave (coloured blue) of the bigger (3) wave at 61.8% of the 2 wave yesterday. During the Asian session, we could observe an ascending movement towards the 123.50 level. Therefore, during the early European session, the GBP/JPY pair did not manage to hold this level and the price retraced towards the 123.05. During the New York session we could observe continuation of the bullish mood from Asian session and the price reached a new daily high at 123.63 level (end of the 4 wave). At the moment we can observe the price around 123.20 level and we are expecting to see the price around 122.00 today. 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 (125.78-122.81-125.43) with Take Profit 1 at 122.52 (100% of wave 1) and Take Profit 2 at 120.69 (161.8% of wave 1). Resistance point at 123.60 can be used as Stop Loss point.
Support and Resistance Levels
(S3) 122.69 (S2) 122.96 (S1) 123.12 (PP) 123.39 (R1) 123.66 (R2) 123.82 (R3) 124.09
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 123.00 with Stop Loss at 123.60, Take Profit 1 at 122.52, and Take Profit 2 at 120.69 are recommended.



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