USDJPY Correction Phase Possible Complete

By: Enda Glynn | Wed, Jan 11, 2017
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Daily Chart

USD/JPY Daily Chart
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4HR chart:

USD/JPY 4-Hour Chart
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30min chart:

USD/JPY 30-Minute Chart
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My Bias: neutral- long
Wave Structure: rally in wave [C]
Short term wave count:wave [iii] grey
Long term wave count: wave [C] is underway, upside to above 136.00
Important risk events: JPY: N/A. USD: Unemployment Claims, FOMC Member Evans Speaks, FOMC Member Harker Speaks, Import Prices m/m, Fed Chair Yellen Speaks.

Last night I was looking for USDJPY to decline further in wave (c) green,
After a brief rise to touch the upper trendline of that trend chanel, the price dropped 240 points in a couple of hours.
There is no other for of analysis that I know of, other than elliott wave analysis, that allows you to see past the cold right edge of the chart like that.
And that is why I use this form of analysis!

Back to the market.
There is a possibility that wave (c) green is complete at todays low of 114.24.
I have shown that option on the chart, but wave ‘iv’ brown could also form a triangle from here, which would allow for another low in the coming days.
The lower target in wave [iv] grey was about 113.90 so that option is not off the table just yet.

If we get a rally above the resistance at wave (b) green, then we can start turning bullish again in wave [v] grey.

Also keep in mind the Alternate wave count on the Daily chart, This view is slightly remote in terms of probability as of today, but there is a certain appeal to that larger picture.
If the market starts dropping through previous support levels, then this wave count will be favored.

Firstly I am looking to see if todays low holds.

 


 

Enda Glynn

Author: Enda Glynn

Enda Glynn
humbletraders.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

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