GBP/JPY Elliott Wave
For the last few days the GBP/JPY pair was developing impulsive wave 3 (coloured blue). Yesterday during European session we could observe a descending move toward the 126.90 level. Therefore during the New York session we could observe strong bearish mood in this currency pair and price drop to 125.10. Today during the early Asian session price continued to fall and we could observe price at the 124.59 level. We can consider this move as end of wave 3 (coloured blue). Presently we are at the start of the 4 wave. In accordance with our wave rules and taking into account that the wave 4 retraces 161.8% of the wave 2, we can define the potential targets with measuring 2 wave with Take Profit at 127.37 (161.8% of wave 2). The support level at the 124.50 level can be used as Stop Loss. Also it is necessary to consider the data concerning the GBP and JPY G8 Meetings that can affect the rate of the pair.

Support and Resistance levels
(S3) 123.29 (S2) 124.37 (S1) 125.04 (PP) 126.12 (R1) 127.20 (R2) 127.87 (R3) 128.95

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 125.50 with Stop Loss at 124.50 and Take Profit at 127.37 are recommended