Japanese yes showing bullish technical structure

The Japanese yen has made three waves of a pull-back from latest high that could be near completion as price tested and already reversed from very important 61.8% Fibonacci support level. We expect to see a move higher from here, ideally in impulsive fashion back to 98.64.

USDJPY 1h Chart: Elliott Wave Analysis

 

The reason for a bullish outlook is previous five-wave rally in wave A) which is called an impulsive move. Impulses show direction of a trend or temporary change in trend, that’s why we think that current trend is bullish, and that three-wave retracement from 98.65 is temporary. Invalidation level remains at 95.75.

On the basic chart below you can see where USD/JPY is at the moment.

 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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