USDJPY: Expanded Flat Could See 108.16 Rejection
Updated
I have been bearish on USDJPY for a while now... My view remains intact as long as prices trade below 108.16.
The current minuette structure suggests an expanded flat is underway, with wave (y) currently in play in the form of a bearish wedge. Should the triangle pattern end up higher, the structure will be completed and prices could start turning lower. That could bring a rather sharp minute wave 4 since wave 2 lasted long (law of alteration). Should the tringle not end higher, that could translate to an invalidation of the expanded flat (minor misses don't matter as much).
The downside potential is marked at 102.50, which is the 100% Fibonacci extension of the 114.55 - 104.50 - 112.40 triangulation.
Should bears take over once again intermediate (Y) will be underway!
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
The current minuette structure suggests an expanded flat is underway, with wave (y) currently in play in the form of a bearish wedge. Should the triangle pattern end up higher, the structure will be completed and prices could start turning lower. That could bring a rather sharp minute wave 4 since wave 2 lasted long (law of alteration). Should the tringle not end higher, that could translate to an invalidation of the expanded flat (minor misses don't matter as much).
The downside potential is marked at 102.50, which is the 100% Fibonacci extension of the 114.55 - 104.50 - 112.40 triangulation.
Should bears take over once again intermediate (Y) will be underway!
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
Note
Only 40 pips away from expanding flat pattern validation now!Note
Rejection exactly at 108.16! Keep a close eye on this one.Note
We are trading at a potential reversal point at 108.166Note
Need break back inside descending channel now
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