USDJPY Bulls To Take A Rest?

The USDJPY bulls made a spectacular performance in the last two weeks. The US dollar rose from 118.86 to 125.05 against the Japanese yen. But the Elliott Wave Principle suggests it could already be too late to buy. Let’s take a look at USDJPY’s impressive rally and see if we could find some early signs of a probable bearish reversal.
usdjpy 2.6.15
As the chart demonstrates, the recent advance has been developing as a five-wave impulse. The theory postulates, that every five waves should be followed by a retracement of at least three waves in the opposite direction. If we apply this knowledge to the current situation in USDJPY, we will come to the conclusion, that now is not the best time to go long, because a correction to the south is likely to occur. Furthermore, wave 4 is a triangle. Triangles are known for preceding the last wave of the old trend. Here, wave 5 should be that last wave. We cannot know whether it is already over or not, but once it is, the bears are about to come back.

New to Elliott Wave?

Elliott Wave principle offers a completely new understanding of what the nature of the markets is, what drives them and what can be derived from their movement. This course is for those of you, who have been looking for an honest Elliott Wave guide, describing the method’s advantages over other trading tools, but not hiding its weaknesses.

Check Video Course    or     Check our eBook


See our Video Course
or check our eBook

Last year over 60k readers trusted EWM Interactive to help them in their trading decisions.

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- Xavier N.

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- J. Kotzee

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- C. Montgomery

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- C. Montgomery