USDJPY Elliot Waves Analysis For 23 February 2016
23 February 2016, USD/JPY
USD/JPY is currently trading with a slight bullish bias. We are waiting for a clear breakout above 112.43, to mark the continuation of a bullish trend. Ideally, wave(c) should continue long with an ultimate target at 116.67. In an alternative case scenario, in case the price breaks below the support trend line-forming bottom of the falling channel, then we will look for short positions but only up to 111.30. This pair should be traded alongside other pairs such as HKD/JPY, NZD/JPY, GBP/JPY and EUR/JPY. These pairs have a strong positive correlation of up to +0.92 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.
Wait for a clear breakout above 112.41, then buy with your target at 116.67. Only sell upon a clear breakout below the supportive trend line with your target at the support 111.30, a break out below the support level 111.30 will call for further short positions.
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