FX.co ★ USD/JPY Analysis for February 25, 2013

USD/JPY Elliott Wave
Since our last analyses the USD/JPY pair has been trading upwards like we expected, impulsive wave (1) (colored green) of the bigger (5) wave (colored red) was developing. During the Friday's Asian and European session we could observe sideways movement between 93.50 and 93.14 level. Therefore, during the New York session this major pair did not manage to hold the highs at 93.50, and price retraced back to 93.28 level. Today the USD/JPY pair is trading around the level of 93.83 and we are expecting the price to be above 95.80 level in the next few sessions. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with 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) 92.66 (S2) 92.88 (S1) 93.02 (PP) 93.25 (R1) 93.47 (R2) 93.61 (R3) 93.84

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 93.90 with stop loss at 92.77 and take profit at 95.84 are recommended.