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Thursday, May 19, 2011

USD/JPY - In the very early stages of wave 3

My long term view still is, that we saw an important long term bottom with the test of 76.99 on March 16. Since then we have seen a micro wave 1 rally, which ended at 85.54 and wave 2 ended at 79.56. We should now be in the very early stages of wave 3 up. The rise since 79.56 if impulsiv can only be counted as an Expanding Leading diagonal, because of the overlapping structure. We should be close to end wave (iii) and should see a new decline in wave (iv) down towards the 81 area.
I would expect this ongoing wave i to end near 82.77.




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