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GBP/JPY Elliott Wave
Since our last analysis the GBP/JPY pair was trading in an upward move, impulsive 3 wave (coloured pink) of the bigger 5 wave (coloured blue) was developing. During the Asian session we could observe descending movement from 132.65 toward the 131.96 level and we can consider this move as the end of the corrective 2 wave (coloured pink). Therefore, during the European and New York sessions this currency started pushing higher reaching a new daily high at 132.89 level. At the moment the GBP/JPY pair is trading around 132.77 level and we are expecting to see the price higher today. 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 133.77 (161.8% of wave 1). To reduce the risk, we can use invalidation at 131.90 level as stop loss.
Support and Resistance
(S3) 130.93 (S2) 131.31 (S1) 131.99 (PP) 132.37 (R1) 133.05 (R2) 133.43 (R3) 134.11
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 132.90 with stop loss 191.90 and take profit at 133.77 are recommended.
