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Elliott Wave Analysis: USDJPY Trading Within Higher Degree Correction

On the daily chart of USDJPY we are observing a nice impulsive higher degree reversal taking place labeled as a three wave A-B-C rise within black corrective wave B. If that is the case, the recent sharp upward reaction is the final push within the final blue wave C which may find an ideal resistance and reversal zone near the 61.8 or even 78.6 Fibonacci ratio, from where bears may again take over.

USDJPY, Daily

Regarding the lower period, we see USDJPY trading nicely higher, now at the 117.4 mark, after a triangle correction had unfolded at the 113.10 level in the previous wave 4. As such, we see more gains in play, ideally, towards the 161.8 Fibonacci ratio, where some resistance may be seen for wave 5 and a minimum three wave reversal lower may follow. A break beneath the 113.11 level would be a confirmation for a top in place and more weakness to follow.

USDJPY, 4H

Gregor Horvat

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!