USD/JPY Elliott Wave
Since our last analysis the USD/JPY pair was trading in a downward move like we expected, impulsive (5) wave (coloured purple) of the bigger 3 wave (coloured blue) was developing. During the Asian session we could observe descending movement toward the 79.35 level. ThereforeŠ± during the European and New York sessions the USD/JPY pair did not manage to hold this level and the price pushed higher reaching a new daily high at 79.63 level. We can consider this move as the end of the corrective (4) wave (coloured purple). At the moment this currency pair is trading around 79.26 level and we are expecting to see the price higher when development of the 4 wave (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 79.54 (38.2% of wave 3). To reduce the risk, we can use support at 78.80 level as stop loss.
Support and Resistance
(S3) 79.25 (S2) 79.33 (S1) 79.38 (PP) 79.46 (R1) 79.54 (R2) 79.59 (R3) 79.67
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 79.00 with stop loss 78.80 and take profit at 79.54 are recommended.