Market Report: Elliott Wave Analysis of USDJPY
The relentless moves in the JPY pairs, is impressive to say the least, truly a remarkable run we have seen in some of the JPY crosses, some pairs like the EURJPY and GBPJPY have seen massive gains.
Although not one to be outdone the USDJPY has followed in sync, only now I think it's nearing a potential high that should yield a decent pullback of 200-250 pips.
Although any pullback, is expected to be just a correction in the larger picture from Oct 2011.
I had a 85.00 target penciled in for this pair, and at the rate its going it will be seen shortly, although I can't say I thought we would see it so quick, I was looking for a timing high in sometime in January 2013 as you can see from this cycle chart.
From the October 2011 lows I am working a flat correction and it appears to be in wave  of C, it still lacks the last few gyrations for the move to have the right look to complete the overall look, hence the timing of a cycle high in January still looks to be on target, once wave  of C is complete we should see a correction in wave  for a few weeks that takes it into January and then potentially a major top early February 2013.
When you take a closer look into this pair, it appears to need a minor dip for a small 4th wave then a push higher to end a larger 3rd wave before a meaningful pullback that should see a move towards 81.50-81.00.
Overall the move from Nov 2011 appears to be a corrective move in the long term trend that has been ongoing for many years in this pair, and I suspect that at sometime in the future we should be coming back to test the 75.00 area.
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Until next time
Have a profitable week ahead