Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of USDJPY , published in members area of the website. As our members know the pair is showing impulsive bullish sequences in the cycle from the January low. Consequently, we were calling for the further rally in the pair. USDJPY made a pull back that has found buyers at the extreme zone from the 08/29 peak.
In the further text we are going to explain the Elliott Wave Pattern and the forecast
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USDJPY H1 London Update 09.01.2023
USDJPY is giving us pull back wave (4). First leg is sharp decline that has a form of 5 waves, so we assume pull back is unfolding as Elliott Wave Zig Zag Pattern. That means both (a) and (c) legs should have 5 waves . We believe the pair is doing ((iv)) of C red. After short term bounce another leg down should ideally follow toward 144.91-144.46. We don’t recommend selling the pair and expect further rally to resume from the marked area.
Reminder : You can learn more about Zig Zag and other Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
USDJPY H1 London Update 09.01.2023
The pair has given us rally from the marked zone as expected. We count (4) blue pull back completed at 144.42 low. Now, as far as the price holds above that low we expect to see further extension higher. We would like to see break above (3) blue peak : 08/29 to confirm next leg up is in progress. Short term we are about to end 5 waves up from the 144.42 low and then we can see a intraday pull back ((ii)) black.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent updates in the membership area of the website. Remember that not every chart is trading recommendation. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
Source: https://elliottwave-forecast.com/forex/usdjpy-elliott-wave-rally-equal-legs/