Today’s focus USDJPY promises more upside potential as we believe that currently it is trading in a new upward wave 5. The next best alternative finds us in wave b of wave 4. Lets first take a look at the daily chart below.
USDJPY still trades within the long term upward sloping channel. Connecting wave 1 top with wave 3 top and bringing a parallel to wave 2, we find that wave 4 could even go towards 90-92 price level. Our primary wave count is the yellow labeled one whereas our second best alternative is shown by the light blue labels. We have either started wave 5 to new highs or we currently have finished wave b of 4 and we start a new downward wave to finish wave 4 correction. Either way, we believe that prices have made a short term top at the 98.70 high. Either wave 1 of 5 or wave b have finished at that level or need just one more new high to finish the move from 93.79. Therefore should be cautious with this pair right now. The expected pull back should be bought if this is wave 2 of 5 or should be sold with 92 as target if wave c starts.
In the longer term however, we expect prices to move upwards impulsively and we believe we can see new all time highs as long as the upward channel is not breached. As always, thank you for taking the time to read my new post.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.