USD/JPY Elliott Wave
This week the USD/JPY pair was trading sideways, corrective red wave 4 of the bigger wave 5 coloured purple was developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 93.51 towards the 92.76 level, and we can consider this movement as the end of the sub-waves (e) (coloured green) of the 4 wave (coloured red). Therefore, during the New York session this major pair did not manage to hold this level, and the price retraced to 93.41. Today the USD/JPY pair is trading around 93.22, and we are expecting to see the price above 95.50 during the next few sessions. In accordance with our wave rules and taking into account the fact that the wave 5 should retrace 100% of the wave 1 , we can define potential targets measuring wave 1 with take profit at 95.84 (100% of wave 1). To reduce the risk, we can use invalidation at 92.77 level as stop loss.
Support and resistance
(S3) 91.53 (S2) 92.14 (S1) 92.63 (PP) 93.24 (R1) 93.73 (R2) 94.34 (R3) 94.83
Trading forecast
Proceeding from the Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at 93.50 with stop loss at 92.77 and take profit at 95.84 are recommended.
