Elliott Wave Analysis: USDJPY Pointing Towards New Highs

USDJPY is showing a nice example of the wave principle in motion, a higher degree impulse. At the moment we see the price trading at the beginning of blue wave five, after some corrective movement had come in play in the previous blue wave 4. That said as we can see on the chart, the 38.2 Fibonacci ratio may have just prove to be a nice region for support, so more upside may follow in the weeks ahead.

USDJPY, Daily

On the 4h chart of USDJPY, we can see a nice strong bullish turn taking place from around the 111.60 level, where we labeled the end of a complex correction. As such, recent recovery gives us an indication for a completed double zig-zag correction and a suggestion that higher levels will now follow while the market stays above 111.60. At the moment we see the price trading up from black wave 2, that seems to have found a base at the 61.8 Fibonacci ratio.

USDJPY, 4H

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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