close icon

USDJPY’s Chart Was Bullish Three Weeks Ago

Less than a month ago, on October 16th, USDJPY fell to 111.65 and it looked like more weakness would follow. Instead, the pair is currently trading above 114.30, after it climbed to 114.73 yesterday, November 6th. The good news is that traders did not have to watch from the sidelines, because the Elliott Wave Principle was there to help. On Wednesday, October 18th, when it was time for us to send the mid-week updates to subscribers, the Elliott Wave analysis of the hourly chart of USDJPY below suggested higher levels should be expected.(some marks have been removed for this article)
usdjpy elliott wave analysis october 18
As early as October 18th, there were signs the bulls were not ready to give up yet. The reason for our bullishness was a five-wave impulse from 107.31 up to 112.71. This pattern indicated that an uptrend was in progress. In addition, the following three-wave correction was recognized as a running flat, where wave a) is a simple a-b-c zig-zag, followed by another one in wave b) up, whose wave “b” was a triangle, and an ending diagonal in the position of wave c).

So, there was a complete 5-3 wave cycle on the hourly chart of USDJPY. According to the theory, the trend was supposed to resume in the direction of the impulsive sequence. In addition, the upper line of the ending diagonal wave c) was breached, which not only served as a confirmation of the bullish reversal, but also provided a specific stop-loss level at 111.65 to protect the long positions. Three weeks later, here is an updated chart of the U.S. dollar against the Japanese yen.

usdjpy elliott wave analysis november 7

It did not take long for the bulls to lift the pair to a new swing high. More importantly, the key level at 111.65 was never in danger. A single chart saved us the trouble of relying on external factors such as news and events by revealing a trading setup waiting for us to take advantage of.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

GBPJPY: Bearish Reversal Expected Near 151.00

GBPJPY has been in recovery mode since it touched 139.90 on August 15th. On September 21st, the pair climbed to a multi-month high of 149.72, but fell to an intraday low of 146.51 yesterday. As of this writing, the Pound is hovering around 147.90 against the Japanese yen. The time is appropriate to apply the…

Read More »

USDCAD Unreliable Resistance Identified in Advance

After slightly exceeding 1.3000 on October 8th, USDCAD retreated to 1.2926 two days later. Given that the pair has been declining since the 1.3386 top registered in late-June, assuming the bears are returning was quite justified. In addition, there was a declining trend line, which had previously led to significant selloffs on two separate occasions.…

Read More »

USDJPY Gave Us a Road Map Three Months Ago

There is a reason why it is called “trading” and not “bottom/top picking”. The latter is literally impossible even with the best trading tools and techniques. Even the Elliott Wave Principle, which we consider to be the best method for price behavior analysis, cannot tell us the exact price level at which the market is…

Read More »

GBPCAD ‘s Rally Needs a Healthy Pullback

October is shaping up to be a good month for GBPCAD bulls. The pair dipped below 1.6600 on October 2nd, but quickly reversed to the upside for a recovery of over 470 pips so far. Earlier today the Pound climbed to as high as 1.7070 against the Canadian dollar. However, extrapolating the current trend into…

Read More »

A Week of Trend Reversals in the Forex Market

The Forex market was very interesting to observe last week. Major news like the Non-Farm Payrolls report in the U.S., the new trade deal between the USA, Canada and Mexico, and Bank of Japan’s determination to keep fighting deflation all contributed to an eventful five days in the world’s largest market. News and events is…

Read More »

USDMXN: Is the 18.50 Support Going to Hold?

It has been over two months since our last article about USDMXN. On July 27th, the Forex pair was trading slightly above 18.6150. The Elliott Wave Principle then suggested “a corrective rally to 19.50 – 20.00 is about to interrupt the downtrend in the near future.” The logic behind our optimism was simple: there was…

Read More »

EURUSD: When the Fed Supports the Elliott Wave View

Following a recovery of more than 500 pips in a little over a month, EURUSD suddenly crashed from 1.1815 to 1.1570 last week, erasing half of its recent progress in just a few days. The selloff came after the Fed raised its benchmark interest rate for the third time this year on Wednesday and promised…

Read More »

More analyses