USDJPY is having a good run recently. The pair started the week from 101.17, but quickly gained traction and is currently trading above 103.60. Despite the fact that it has been in a strong downtrend since June 2015, USDJPY, it turns out, could still offer bullish opportunities. In order to get advantage of them, the bulls have to keep their eyes open for the signs, which Elliott Wave analysis makes visible.
Before the markets opened on Monday, October 3rd, we shared our expectations about USDJPY with our premium clients, by sending them a comprehensive 4-page analysis with the following chart included.(some of the marks have been removed for this article)
As visible, we thought the pair’s prospects for the week were quite positive. As long as the green line of support, connecting the lows of waves W) and (v) remained intact, USDJPY was supposed to break the upper line of the corrective channel in red and proceed to the north. As the next chart will show, we did not have to wait long for this to happen.
The upper line of the channel gave up on Tuesday, October 4th, which opened the door for the rally we are now witnessing. The Wave Principle is famous for its ability to help traders predict such developments and act upon them. Furthermore, you do not need to constantly follow each piece of news or economic data, in order to get a clue of where USDJPY is going next. All you need is a couple of charts and the sight of an experienced Elliott Wave analyst.
What to expect from now on? What is the bigger picture saying? Is USDJPY going to continue even higher or the resistance near 103.60 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your Elliott Wave analysis due out every Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.
