USDJPY Elliott Wave Analysis: Trying for Higher Levels

USDJPY Elliott Wave Talking Points:

  • The height of the current rally is normal within the context of a bearish Elliott wave zigzag
  • If this pattern unfolds, then Elliott wave forecasts a bearish trend to 111 and possibly 108
  • A break above 114.56 negates this pattern and we’ll reconsider further bullish opportunities

USD/JPY has been caught within an upward correction that we believe will resolve in a bearish turn soon. Bigger picture, we think USDJPY is in a downward corrective cycle since October 3 that may drive the pair towards much lower levels.

The current Elliott Wave for USDJPY

We might be

New to Elliott wave analysis? On page 4 of our Elliott wave beginners guide, we list out the rules and guidelines so you can properly label your own charts.

We are anticipating an a-b-c zigzag pattern lower that began October 3. This zigzag pattern would make up the ‘E’ leg of a larger triangle pattern that began from the 2015 high. It appears as though wave ((b)) of the zigzag is close to a termination point so that makes the current Elliott wave ((b)) of E.

Article source: https://www.dailyfx.com/forex/technical/elliott_wave/usd-jpy/2018/11/08/trying-for-higher.html