USD/JPY completed 2019 inside 100 pips of the place it started the calendar 12 months. This speaks to the sideways chop USD/JPY has been caught in.
Inside Elliott Wave Concept, this sideways chop is indicative of a corrective wave. Since registering a excessive in 2015, USD/JPY has slowly been correcting itself decrease. It seems this downward correction is just not full and its doable we might even see a breakdown under 104 and probably 99.
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USD/JPY Present Elliott Wave
At massive diploma, the final accomplished wave is an ‘X’ wave triangle from 2016 to April 2019. Subsequently, the following wave we’re anticipating is a ‘Y’ wave decrease. The ‘Y’ wave will seemingly take the type of an Elliott wave zigzag sample. We’ll anticipate impulse waves transferring decrease, adopted by corrective waves greater.
There may be sufficient proof in place to recommend the corrective wave from August 2019 to December 26, 2019 is full.
First, the reversal on December 26 occurred close to the 61.eight% retracement stage of the earlier down pattern.
Secondly, because the December 26 excessive, we will see the construction of one other bearish impulse wave on the intraday chart. We’re anticipating USDJPY could press a bit of greater however maintain under 109.69.
Consequently, our Elliott wave evaluation suggests we search for USD/JPY to press as much as 108.50-109.25 with a bearish reversal occurring close to this value zone whereas holding under 109.69. We are able to dial within the bearish targets as soon as this upward correction finalizes. Usually talking, bearish targets would come with 107.25 and 106.50 with probably decrease ranges in play.
See extra commentary on USD/JPY on the 51:50 to 55:25 mark of this current Elliott Wave webinar.
Really useful by Jeremy Wagner, CEWA-M
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—Written by Jeremy Wagner, CEWA-M
Jeremy Wagner is a Licensed Elliott Wave Analyst with a Grasp’s designation. Jeremy offers Elliott Wave evaluation on key markets in addition to Elliott Wave instructional sources. Learn extra of Jeremy’s Elliott Wave reviews through his bio web page.
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