Ahead of NFP USDJPY has managed to stay above 102.00 level and right now is consolidating around 102.30 level, which was an important resistance. Since we briefly took out 105.00 the pair has been moving side ways in a fairly large range (approx 460pips) and since there has been no decisive moves I'm starting to suspect that we might be in a contracting triangle. From EW perspective I'd say that all the moves since 105.00 have been corrective and thus triangle would fit.
If we really are in a triangle, then we need another leg higher to complete wave D which usualy is around 78.6% out of the C wave. That target is also supported by the fact that 61.8% of the current move from lows would take us to that 78.6 fib level.
Time will tell. Have a great NFP Friday.
If we really are in a triangle, then we need another leg higher to complete wave D which usualy is around 78.6% out of the C wave. That target is also supported by the fact that 61.8% of the current move from lows would take us to that 78.6 fib level.
Time will tell. Have a great NFP Friday.