USDJPY Could Be In Final Stages Of An Uptrend-Elliott Wave Forecast

USDJPY broke higher last week, out of a triangle pattern that we have been tracking it since mid-April. This triangle has been placed in wave four, so we must be aware of a bearish reversal in the next few days/weeks if we consider that this type of patterns occurs always prior to the final move of the larger trend. So current leg up should be our final leg then; most-likely wave 5 of an ending diagonal. However, each leg in ending diagonal should be sub-divided minimum by three waves so current pull-back is probably wave (b) with wave (c) yet to come that may hit 103.00/103.50 level. After a completed ending diagonal we will be looking for a sharp reversal lower. Fall back beneath 100 would be a first but important sign for completed ending diagonal and weaker prices ahead.

What Is Ending Diagonal?

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final "C" wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

USDJPY Could Make Pull-back From 100-Psycho Level

USDJPY is trading sharply higher for the last two weeks, but resistance for bulls could be near as we can count five waves up from 92.50 low. And we know that after every five waves correction follows. We see current leg up as wave (v), final leg of a five wave rally that may look for a top formation in the near-term, ideally around 100-psycho level. Divergence on the MACD also suggests that bullish momentum and volume are decreasing which is usually an important and early evidence for a coming reversal.  As such, pair could retrace even back to 97.50 Sunday Gap in the next few sessions.

For more analysis visit us at www.ew-forecast.com

Don't miss out, Special offer for new members
2 MONTHS FOR THE PRICE OF 1

USDJPY Is in Impulsive Rally

USDJPY gaped higher on Sunday and accelerated up to 99.60 area where pair found resistance around 261.8% extension of wave (iv). As such, we think that pair will make a deeper retracement very soon, back to 97.20. Move should be in minimum in three waves.

Get 2 Month Membership at ew-forecast.com for Price of 1 Month. Limited time offer

USDJPY : Rise Above 95.45 Puts Pair Back In Bullish Mode

Despite a big gap down on USDJPY pair remains in bullish mode as decline is actually still in three waves which we think it's wave (iv). Notice that wave (iv) is actually testing some interesting levels around 04.30, where we can see an upper line of a base channel as well as 38.2% retracement level compared to wave (iii). With that said, pair could continue higher in this week, but we need to keep a close eye on 95.44 level. An overlap will confirm the bullish case. Why? Because in such case decline from the top would be a completed three wave fall which is a corrective structure.

USDJPY Updated Wave Count click here

Visit our website and Get more charts and forecasts with free access through 7-Day Trial Offer.
You can also follow us on twitter @ewforecast

#USDJPY Approaching Former Swing Lows That May Reach As A Resistance

USDJPY Approaching Former Swing Lows That May Reach As A Resistance

USDJPY gapped higher on Sunday and then reversed sharply lower on Monday during the US hours when stock market fell. As such, wave (v) was a little short but still valid because pair reached new high at 94.53 and completed black wave 3. As such, we suspect that pair is now in a three wave retracement lower in wave 4 that may reach 90.00 level. One possibility is also a flat in wave four if rally from 90.92 will be in five waves.

If wave count below is correct, then pair should reverse lower 92.80-93.20 resistance; former swing lows.