GBP/JPY Elliott Wave
The GBP/JPY pair was trading in a sideways move yesterday developing complex 4 wave correction (coloured blue). During the Asian session we could observe the ascending movement toward the 124.38 level. We can consider this move as (W) wave (coloured pink). Therefore during the European session the GBP/JPY pair did not manage to hold this level and the price pushed toward the 123.45 level (end of the x wave). During yesterday's New York session and today's Asian session the GBP/JPY pair was pushing higher developing (Y) wave (coloured pink). Presently we are at the start of the 5 wave and we are expecting to see price under the 123.60 level today. In accordance with our wave rules and taking into account that the wave 5 retraces 100% of the wave 1, we can define the potential targets with measuring 1 wave (coloured blue) with Take Profit at 123.56 (100% of wave 1). End of the 4 wave at 124.50 can be used as a Stop Loss point. Also it is necessary to monitor the UK CBI Realized Sales data that can change the rate of the pair.

Support and Resistance Levels
(S3) 123.20 (S2) 123.55 (S1) 123.76 (PP) 124.10 (R1) 124.45 (R2) 124.66 (R3) 125.00

Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the downward movement. That is why Short positions at level 124.00 with Stop Loss at 124.50 and Take Profit at 123.56 are recommended.