USDJPY Elliot Waves Analysis For 15 February 2016
15 February 2016, USD/JPY
USDJPY is currently trading with a bullish bias. We expect an upward acceleration towards 114.36 or even higher to 114.80. Ideally, the current upward zigzag structure is the unfolding of a three wave cycle towards 114.80. While we do accept that the price could turn around from 114.36, it may likely head further to 114.80 before going massively short towards 111.36 to form a double bottom. The support level 111.36 is thus a clear buy level if it holds the market above it. This pair should be traded alongside, USD/CHF. These pairs have a strong positive correlation of up to +0.86 and are thus expected to have a similar price action. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
Remain long bit only up to 114.36 or 114.80. If the price should turn perfectly bearish from either levels, its better to sell the pair with your ultimate target at 111.36
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