The US Dollar / Yen currency pair (USDJPY) continues to move sideways. It’s trapped in a tight range so we assume that it’s a triangle in the making. And possibly in the late stages of the structure.
Elliott wave guidelines suggests that when a wave D) swing high and triangle resistance line are broken, that’s when the market is ready to resume its uptrend.
For now, that’s not the case yet, so we have to be careful and wait for a rise above 110.80 before bulls are be back in play.
Let’s look at the chart.
USDJPY 4h Elliott Wave Analysis Chart
The Euro / Yen currency pair (EURJPY) is slowing down after a sharp and impulsive rally as part of the first leg A/1. Therefore, the current decline should be seen as part of a correction in wave B/2.
We see it as a complex w-x-y correction, where ideal support would be around the 61.8 Fibonacci and 129.0 support level. This is where we can expect a continuation higher within wave C or 3.
EURJPY 4h Elliott Wave Analysis Chart
The Pound / Yen currency pair (GBPJPY) is recovering again on the 4-hour chart, but it’s trading mostly sideways which we see as part of a complex w-x-y correction in wave 4. Sooner or later, we expect to see a continuation higher for the 5th wave… just be aware a wave e) of “y” slow down back to the 150 support area.
GBPJPY 4h Elliott Wave Analysis Chart
Twitter: @GregaHorvatFX
The authors may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
