USD/JPY Weekly
USD/JPY Daily
USD/JPY:Has been in a major impulsive uptrend since the October 31 - 2011 low at 75.56.
Looking at the weekly chart we are currently in the final wave 5 leg higher towards 107.20. As can be seen on the weekly chart, wave 4 was a nice horizontal triangle and triangles always tell us, that the next wave in the direction of the underlying trend will be the last in that sequence and will be followed by the biggest correction, time- and pricewise, since the sequence began. That means, that once wave 5 is in place we can expect a correction will take at least six months and decline towards at least 97.26.
However, looking at daily chart, we are only in wave iv of 5. As wave ii of 5 was a deep and simple zig-zag correction, we should expect wave iv to be shallow and complex. Wave iv of 5 should either be some kind of flat correction or a triangle. I will not be looking for a correction deeper than the 101.15 - 101.65 zone, before the final wave v of 5 higher towards 107.20.
Hi! If usdjpy will sideways and rise to 107...and as usdjpy and eurjpy has positive correlation....what would be the behaviour of eurjpy?
ReplyDeleteHi Zink,
DeleteI asked myself the same question.
I have said this many times, I don't like to look at one currency pairs behavior (EUR/JPY) depending on what EUR/USD and USD/JPY does.
But if I have to guess I would say a move towards 144.00 and then Down as EUR/USD moves more quickly, than USD/JPY, but I will emphasize, that this is purely guessing,
Kind regards
EWS
If usdjpy go down under 101.46...very bad....double top!! i will have doubts that will rise to 107!
ReplyDeleteHi Zink,
ReplyDeleteI might lok like a double top, but I would regard it as a bear-trap and expect a new rally higher towards 107.
At least we should see one more high above 103.73, which was the top of wave 3 once above herewe could see a reversal any time, but now would be to early.
Kind regards
EWS
Hi EWS:
ReplyDeleteFor sure you rememeber in 2011 when you were talking one possible long term target for the pair in 115, afterwards you were talking us of the next long term level in 124.16. Don't you see now?. I think one of the most importants targets for the main count is the 61,8% level from 0 to 3, so this level is approximately 113,936, which is very near of your first objetive in 2011
Hi Manuel,
DeleteI remember well the long term target I mentioned in 2011. I still think we will both see 115 and 124.16 and even higher longer term. However and the impulsive rally of the 75.56 low has evolved and we get more information to try to finetune a possible top for A or 1 I do think 107 offers a better target from where we could see a correction in wave B or 2. But this correction should befollowed by a new rally higher where both 115 and 124.16 should be hit.
Kind regards
EWS
Thanks a lot EWS, have a great day
DeleteHi Manuel,
DeleteA great day to you too!
Kind regards
EWS