Hi Traders,
The USDJPY has been trading in a large triangle on the longer cycle after a bullish Elliot wave impulsive structure that ended in May 2015. Once the price breaks out of the triangle trendline and crosses the wave (D) high, we can expect a long-term bullish move.
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However, in the shorter cycle, the price has just completed a three-wave correction that unfolded as an a-b-c expanded flat pattern and finds support at 78.6% retracement of the short-term five-wave bullish impulse labelled i-ii-iii-iv-v.
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According to Elliot Wave theory, once a 5-3 wave cycle is completed, the trend is expected to resumes in the direction of the impulse structure. If this count is correct, price is expected to extend higher in another five-wave pattern in wave (iii) and has the potential to move above wave (i) high in Mid-term.
.
USDJPY WEEKLY CHART
Do you like this Elliot Wave analysis? Let me know in the comment.
Thanks for reading!
Veejahbee.
The USDJPY has been trading in a large triangle on the longer cycle after a bullish Elliot wave impulsive structure that ended in May 2015. Once the price breaks out of the triangle trendline and crosses the wave (D) high, we can expect a long-term bullish move.
.
However, in the shorter cycle, the price has just completed a three-wave correction that unfolded as an a-b-c expanded flat pattern and finds support at 78.6% retracement of the short-term five-wave bullish impulse labelled i-ii-iii-iv-v.
.
According to Elliot Wave theory, once a 5-3 wave cycle is completed, the trend is expected to resumes in the direction of the impulse structure. If this count is correct, price is expected to extend higher in another five-wave pattern in wave (iii) and has the potential to move above wave (i) high in Mid-term.
.
USDJPY WEEKLY CHART
Do you like this Elliot Wave analysis? Let me know in the comment.
Thanks for reading!
Veejahbee.