USDJPY Elliot Waves Analysis For 18 February 2016
18 February 2016, USD/JPY
USDJPY is currently trading with a bearish bias. During the previous trading day, usd/jpy tested the level 114.35 but could not close above it. Instead, the pair crossed and closed below the pivot level 114.18, and is still pretty much bearish. We expect the current downward movement to be the unfolding of wave (b) with our target at 112.49 and 111.33. Ideally, wave (b) should continue short to form a double bottom with the level 111.33. We will only look for a clear breakout above 114.35 wih our ultimate target at 116.14. This pair should be traded alongside other positively correlated pairs such as USD/CHF,NZD/JPY, and GBP/JPY. These pairs have a strong positive correlation of up to +0.86 and are thus expected to have a similar price direction. Only buy or sell usd/jpyif all the other positively correlated pairs are giving the same signal.
Remain short with your ultimate target at 111.33
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