USDJPY: Corrective Retracement Suggests More Gains Ahead

A decline from 125.82 occurs in three waves and three minor sub waves in A, so we think that the pair is in a big downward corrective retracement. Ideally, that is a flat with an extended wave C to the 116 area, where it might already accomplished wave (4), so traders should not be surprised by a move back to the highs by the end of the year.

USDJPY, Daily

On the 4h chart, USDJPY fell sharply 48 hours back through the 118.57 level. Therefore it seems that a triangle that we have been tracking over the last few weeks was only in wave (b) of an incomplete black wave B/2 of a higher degree, that hit the 61.8% Fibonacci level. The price action is already turning up from there so ideally, the pair will turn back to a bullish mode now. An overlap with 119.62 will confirm a new impulse up for wave C/3, above 121.70.

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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