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USD/JPY Elliott Wave
For the last 2 days the USD/JPY pair was trading in a downward movement, corrective 2 wave (coloured blue) of the bigger (3) wave (coloured green) was developing. Yesterday during the Asian and European sessions we could observe ascending movement from 83.84 toward the 84.45 level. Therefore, during the early New York session this major pair did not manage to hold this level and the price retraced back to 83.85 level. We can consider this move as the end of the 2 wave (coloured blue). At the moment the USD/JPY pair is trading around 83.86 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 85.46 (161.8% of wave 1). To reduce the risk, we can use invalidation at 83.60 level as stop loss.
Support and Resistance
(S3) 83.42 (S2) 83.64 (S1) 84.01 (PP) 84.23 (R1) 84.60 (R2) 84.82 (R3) 85.19
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 84.15 with stop loss 83.60 and take profit at 85.46 are recommended.
