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USDJPY accelerated nicely to the upside last week and finally took out the 100.60 swing high that represents a wave D) high in a triangle. Usually when this high is broken it means that the triangle is complete and that the market is moving impulsively.

With that said, we think that prices are in a red wave 3) of (5) moving up towards new highs. USDJPY is now in bullish move as long as the pair trades above 98.80

DAILY chart

 891usdjpy_nov_24_2013_daily forex trading Elliott Wave Analysis

On the 4h chart we can see an impulse in progress. We are tracking black wave 3 as labeled on the chart which is an impulsive wave, so we expect to see five waves up. At the moment, we can see that the pair reversed slightly to the downside from the 101.90 area (261.8% Fibonacci resistance) that could be a top of a subwave (iii). As such, we suspect that the pair will know make a corrective retracement in wave (iv) back to the 101.00 region from where we expect a continuation back to the highs. As such, the 101.00 region could be interesting for long entries.

4H Chart

 2816usdjpy_nov_26_2013_4h forex trading Elliott Wave Analysis