Wait for it... if USDJPY is actually making a flag, then the biggest trade seems to be a nice long. short maybe but very short term. Levels on the chart. Targets on the arrows.
Wait for it to be more oversold.
After that nice impulse wave down, we should see a correction. By Elliott's guidelines, correction could extend to the 4th wave give a possible target of 112.685. Fits nicely with my XAUUSD short idea.
It's nice that the target is the confluence of two fibonacci levels.
Following Elliott's Principle, the 3rd wave is never the shortest wave in a 5 wave structure, therefore the 5th wave in this structure shouldn't go beyond 113.718.
This would give an entry short around 133.718 waiting on price action confirmation.
Take profit 1 at the convergence of the 0.786 retracement and the 0.50 @ 112.685
Take profit 2 at the 0.618...
Possible 5 wave or ABC structure forming.
In case of it being a 5 wave structure, the 3rd wave just got started. This tends to be the longest wave.
Strong supports and take profits at confluence of fibonaccis:
≈ 1.2800 which has already been tested
≈ 1.2723 which could start the correction of the possible 3rd wave of the 5 wave structure
≈ 1.2636 which would...
This is on a weekly TF so allow for intraday volatility.
Based on structure a short for EURUSD seems in order.
Entry at 1.11725
Since a 0.618 level is at near the bottom of the structure, that would be my take profit at 1.08312
Will be looking for a good entry on the daily TF.
Base on Elliott's guideline of equality where if wave 3 is the longest, wave 1 and wave 5 should be equal, the DJI shouldn't go higher than 21785.
Based on this we should be very close to a correction.
A wave analysis of the S&P500 shows it is too close to a correction based on the same guidelines. S&P500 idea linked below.