Flat Correction in USD/JPY

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Hello traders! In one of our latest articles, published in the middle of the week here at Forex Crunch, we were discussing about Usd/Jpy and a potential Long opportunity after a nice pull-back against five waves that appeared from the 80.40 area. Well, unfortunately the pair did not go in our preferred direction, prices went straight down and reached levels below 80.40 on Friday, just before the close.

And here is the great question we received from a reader.

“How Elliott Wave Theory can explain a five wave move of the lows being fully retraced in USDJPY?”

Well moves on the forex market can be very tricky sometimes, but Elliott Wave Principle always has an answer, but to figure it out, all you need to know is just a few rules and guidelines about that theory.

In our free video we will present you one of the most common pattern, called a “Flat correction” which occurred on Usd/Jpy and provides an answer to our reader.

Check out our video below.

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About Author

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!

1 Comment

  1. There were thousands of EW calls of going long on UJ in the last 10 years.

    but of cours EW is great always right. the problem is the count 🙂

    trend is down.

    So now. going longer time frames. you have 0% interest. everybody get loans in JPY. next crisis. bang JPY goes even stronger.

    i would only go long based on some intervention if price goes below 90. intervention is going to fail and JPY will become even stronger.