USDJPY has been trading between 121.65 and 118.55 for more than a month now. Trading in ranges is quite difficult, so being able to predict when the consolidation is likely to end is essential. The Elliott Wave Principle suggests the USDJPY pair might just be ready for a large tradable move. Its direction, according to the analysis, is visible on the chart below.
As you can see, there seems to be a W-X-Y double zig-zag in construction. A triangle in wave X, means wave Y to the upside should be next. The invalidation level for this count lies at the bottom of wave “e” of X. As long as 119.22 holds, we believe USDJPY is a “buy”. 123.00 looks like a good first target.
