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USDJPY has made three waves of a pull-back from latest high that could be near completion as the price tested and already reversed from the very important 61.8% Fibonacci support level.

We expect to see a move higher from here, ideally in an impulsive fashion back to 98.64.

The reason for the bullish outlook is a previous five wave rally in wave A) which is called an impulsive move.

usdjpy aug 21 2013 1h Elliott Wave Analysis technical trading forex currencies

 

Impulses show direction of a trend or temporary change in trend, that’s why we think that current trend is bullish, and that three wave retracement from 98.65 is temporary. The invalidation level remains at 95.75.

On the basic chart below you can see where USDJPY is at the moment.

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