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GBP/JPY Elliott Wave
Yesterday the GBP/JPY pair was trading in a downward movement like we expected, corrective C wave (coloured pink) of the bigger 4 wave (coloured blue) was developing. During the European session we could observe ascending movment toward the 132.29 level. Therefore, during the New York session this exotic currency pair did not manage to hold this level and the price started pushing lower reaching a 131.54 level. We can consider this move as the end of the C wave. At the moment we are at the start of the final E wave (coloured pink) and we are expecting to see the price lower today. In accordance with our wave rules and taking into account that the wave 4 should retrace 23.6% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 131,12 (23.6% of wave 3). To reduce the risk, we can use resistance at 132.65 level as stop loss.
Support and Resistance
(S3) 130.63 (S2) 131.09 (S1) 131.45 (PP) 131.91 (R1) 132.27 (R2) 132.73 (R3) 133.09
Trading Forecast
Proceeding from Elliott Wave rules today, the price is expected to begin the downward movement. That is why short positions at level 132.20 with stop loss 132.65 and take profit at 131.61 are recommended.
