Elliott wave analysis of USD/JPY

 DAILY

4 HOURLY

USD/JPY

The decline from the 103.73 high to the 93.79 low was clearly in five wave, while the rally of the 93.79 low is in three waves, that calles for one more decline in a Picture perfect zig-zag correction. The ideal target for wave c of this zig-zag correction is at 90.98, where wave C will be equal in length to wave A.

Short term we should see resistance at 100.85 protect the upside for an impulsive decline to just below 97.00 and long term we should be looking for much lower levels before this correction finally comes to an end.

 

Elliott wave analysis of USD/JPY

USD/JPY

Please see my previouse post on USD/JPY here first: http://theelliottwavesufer.blogspot.dk/2012/12/elliott-wave-analysis-of-usdjpy.html

With the break above 84.18 we knew, that the possible bearish triangle was invalidated and the bullish count was the correct one. We are just a few pips from the next important confirmation as a break above 85.52 will confirm the the rally higher towards 92.38 as the next major target. However I would expect this rally to be much bigger and could make it all the way to 101.82 before the next bigger correction is seen. That said we might only be in the very early start of a new major rally, that will have its first major target at 124.16.