The USDJPY has been on our focus and on our trading strategy since we first noticed the sideways triangle formation and the upward potential once a break out occurred. Trading2day subscribers were notified regarding our bullish view from when prices were trading at 98. Since then we noted several times that a break out of the triangle would mean the start of a new upward wave that has initial target 105-106. Prices have broken the triangle upwards and are now inside an upward sloping channel. Price patterns remain bullish as higher highs and higher lows continue to be formed.
In the chart above you can see our long-term Elliott wave count we have applied to USDJPY. The expected wave 5 is currently unfolding according to our analysis and very close to our initial target. Below you can see the upward sloping price channel that is formed and consists of the upward move from 97. Notice the purple downward sloping trend lines once broken, how prices explode upwards to make new higher highs.
We expect this to be the case in today’s upward break out. Below you can see a zoomed in chart for today’s upward break out. We believe that prices have found support on the lower channel boundaries and are now starting an upward bounce that will at least test recent highs.
We expect prices to hold above 102 and continue their upward move towards 103,90 at least. For more detailed analysis and bullish or bearish signals, become a member today. As always, thank you for taking the time to catch up on my thinking.