USDJPY Elliot Waves Analysis For 22 February 2016
22 February 2016, USD/JPY
USD/JPY is currently rebounding from a significant support level 112.43. We expect the level 112.43 to have marked the end of wave (b) and that the current upward rally is the unfolding of wave (c) with our ultimate target at the resistance level 116.67. If the price should cross below 112.43, then wave (b) will likely head further short to form a double bottom with the daily support at 111.30. This pair should be traded alongside other positively correlated pairs such as HKD/JPY, these pairs have a strong positive correlation of up to +0.90 and are thus expected to have a similar chart patterns. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
As long as the pair trades above 112.43, look for long positions with your ultimate target at 116.67. Clear close below 112.43 will call for long position with an ultimate stop at 111.30
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