empty
 
 
18.05.2018 10:05 AM
Wave analysis of the USD / JPY currency pair for May 18, 2018

This image is no longer relevant

Analysis of wave counting:

In general, it is expected that during the yesterday's trading, the currency pair USD / JPY continued to develop the upward movement and stopped at the level of 110.85 in the afternoon. Thus, we can assume that the currency pair remained in the formation stage somewhat complicating its wave structure of the wave 5, a, 4, C, C, (B). If this is so, then working off the level of the 111th figure can lead to a price turn against the dollar and the beginning of the formation of the future wave b, 4, C, C, (B).

The objectives for the option with purchases:

111.00

111.59 - 76.4% of Fibonacci

The objectives for the option with sales:

109.18 - 50.0% of Fibonacci

108.10 - 38.2% of Fibonacci

General conclusions and trading recommendations:

The upward wave 4, C, C, (B) continues its construction, complicating the internal wave structure. Thus, I recommend buying a pair with targets that are about 111 figures and an estimated level of 111.59, which is equivalent to 76.4% of Fibonacci. I recommend to go back to sales after the completion of wave 4, which can be determined, for example, on the output of the tool from the upward corridor. The MACD divergence warns of the readiness to build a downward set of waves in the near future.

Chin Zhao,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback