USDJPY POSSIBLE ELLIOT WAVE 3 IN MOTION
Forgive me if I am jumping the ship here but sometimes your eyes is still the best indicator in forex trading. We have After FOMC meeting yesterday; the pair fell to a low of 117.32 before pulling back to 118.28, which are 5 pips shy of 100Pips. Some stops have been cleared on the way.
On Thursday we saw price make a turn and fell sharply towards the low; stalling at 117.44, in doing so failing to make a lower low in this price formation.
Our analysis is this; that low of 117.32 to the high of 118.28 is the first wave, the wave from 118.28 to 117.44 is the second wave.
Here we have seen price action that suggests the second wave is now over. According to our analysis again the third wave is now in motion. Traders still think there is more lows to be made in USDJPY, don’t get me wrong it is possible, but a trade back above 118.26 will set us up for a larger move to the upside confirming the wave 3.
In my opinion, it is good to long from this level with a low risk trade by placing stop just below 117.44. We will target 120.30 first before any further confirmation.
GLT and trade with care
Follow us on twitter: @charts_247
On Thursday we saw price make a turn and fell sharply towards the low; stalling at 117.44, in doing so failing to make a lower low in this price formation.
Our analysis is this; that low of 117.32 to the high of 118.28 is the first wave, the wave from 118.28 to 117.44 is the second wave.
Here we have seen price action that suggests the second wave is now over. According to our analysis again the third wave is now in motion. Traders still think there is more lows to be made in USDJPY, don’t get me wrong it is possible, but a trade back above 118.26 will set us up for a larger move to the upside confirming the wave 3.
In my opinion, it is good to long from this level with a low risk trade by placing stop just below 117.44. We will target 120.30 first before any further confirmation.
GLT and trade with care
Follow us on twitter: @charts_247
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