USDJPY did exactly as we wanted and projected 3 days ago. We were looking for a wave 4 correction and we saw a wave 'A' by means of a leading diagonal followed by a wave B consolidation. The levels we saw as significant got respected as well. Now we have to see whether this will unfold in a more complex corrective combination or a strong wave C. For this week I'm done trading but once I see USDJPY consolidate next week I'll be looking for another buy towards 103 ish. If it reverses then we look for 5 waves lower which will present a nice sell trade as well after the first impulse and consolidation.
Price is closing in on the target zone. We didn't see price consolidate but it extended higher today. Watch for a 1-2-3 reversal for a potential sell trade. Other Yen pairs will follow so you can wait for the first Yen cross to reverse as additional confirmation that the Yen is gaining strength again.If we don't see a reversal we are fine and wait for the next acceleration before considering a buy, however buying out of a bullish extension is not what I would be doing.
Comments
RenkoCloud
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Though I missed the trade but it's an excellent one for educational purpose...
btM_Afta
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Nice, i think we can have a little pullback to 100,50-60 and then keep going ... ill add in that price !
TimStuyts
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Yes I agree, not sure whether we go that low, but let's see. Good trading to you!
btM_Afta
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Good trading to you too and nice chart by the way !
TimStuyts
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By the way do you mean 101.50 instead of 100.50? that level I definitely like.
coifx
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Excellent! I am looking for a short on this pair soon