Market Overview
Yesterday the GBP/JPY pair started the sideways movement, reaching the new 2-week high of 121.97. The pair did not manage to break down the level 122.00 and therefore dropped to the level 121.15 during the New York Session. The pair closed at 121.72 on Wednesday. Today during the Asian session the GBP/JPY pair declined lower than the level 121.30. For the next few days the bear tendency on market is expected to continue.
Support and Resistance
(R3)122.51 (R2)122.19 (R1)121.98 (PP)121.66 (S1)121.34 (S2)121.13 (S3)120.81
Important News
(JPY) CSPI y/y
(GBP) CBI Realized Sales
Elliott Wave Analysis for GBP/JPY
The GBP/JPY pair completed the wave A within 5 sub-waves at level 121.97 and started the wave B of the bigger wave C. According to our wave rules and taking into consideration that the wave B is to retrace over 50-61.8% of the wave A, we can define possible target levels with Fibonacci Retracement (117.21-121.98) - 119.60 for 50% retracement and 119.03 for 61.8% retracement. The end of wave A at level 121.97 can be used for Stop Loss.
Trading Forecast
Concerning the Elliott Wave Rules today the trend is expected today to go downwards. That is why it is recommended to open the short positions at level 121.30 with Stop Loss at level 121.97 and Take Profit at level 119.03.