USD/JPY Elliott Wave
Yesterday the USD/JPY pair was trading in an upward move developing corrective wave 2 (coloured green). During the European session we could observe an ascending movement towards the 79.85 level. Therefore, during the New York session this major pair continued it’s trading in a bullish mood and price reached a new daily high at 79.92 level. We can consider this move as the end of the 2 wave (coloured green). Today the USD/JPY pair started pushing lower and price is currently trading around 79.76 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (79.98-79.30-79.92) with Take Profit 1 at 79.24(100% of wave 1) and Take Profit 2 at 78.82 (161.8% of wave 1). Resistance point at 79.90 can be used as a Stop Loss point.
Support and Resistance Levels
(S3) 78.96 (S2) 79.19 (S1) 79.48 (PP) 79.71 (R1) 80.00 (R2) 80.23 (R3) 80.52
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the downward movement. That is why short positions at level 79.60 with Stop Loss at 79.90, Take Profit 1 at 79.24 and Take Profit 2 at 78.82 are recommended.