GBP/JPY Elliott Wave
The GBP/JPY pair was trading in a sideways move yesterday developing C wave (coloured green). During the early European session we could observe descending movement towards 124.07 level. We can consider this move as end of 5 wave of the bigger C wave (coloured green). Therefore during the New York we could observe start of the bullish mood for the 1 wave development and price reached 124.90. Today during the Asian session the market is still in a sideways move and if price broke 125.00 we would have confirmation that our count is right. In accordance with our wave rules we can place Take Profit for the 1 wave (coloured green) at 128.00, for stop loss we can use 124.05. Also it is necessary to consider the data concerning the JPY Tokyo Core CPI y/y, National Core CPI y/y and EU GfK German Consumer Climate, Italian Retail Sales m/m that can affect the rate of the pair.

Support and Resistance levels
(S3) 123.78 (S2) 124.09 (S1) 124.29 (PP) 124.60 (R1) 124.91 (R2) 125.11 (R3) 125.42

Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 125.00 with Stop Loss at 124.05 and Take Profit at 128.00 are recommended.