USDJPY : The Rise Above 95.45 Puts the Pair Back

Despite a big gap down on USDJPY, the pair remains in bullish mode as the decline is actually still in a three wave pattern, which we think it’s wave (iv).

Notice that wave (iv) is actually testing some interesting levels around 94.30, where we can see an upper line of a base channel as well as a 38.2% retracement level compared to wave (iii).

With that said, the pair could continue higher in this week, but we need to keep a close eye on the 95.44 level. An overlap will confirm the bullish case. Why? Because in such case decline from the top would be a completed three wave fall which is a corrective structure.

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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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