USD/JPY: The Wave Structure Points Towards 99 And 100

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USDJPY reversed nicely higher this week, now already trading well above the upper trend line of a corrective channel connected from the 99.00 swing high.

This breakout is a confirmation for a change of trend: from a temporary bearish direction to a bullish view.

As such, we believe that the corrective three wave decline in wave 2/B is complete at 96.92 and that prices are moving up in wave 3 or wave C. Both waves, C and 3 are motive waves which means that we expect a five wave rally from the end of wave 2/B so that the pair is expected to revisit the zone above 99, possibly even the 100 psychological level.

In the near-term however, we could see a pull-back to 97.90-98.10 region in wave (ii) before the uptrend resumes.

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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!

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