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USDJPY Elliot Waves Analysis For 24 February 2016

24 February 2016, USD/JPY

USDJPY Elliot Waves Analysis For 24 February 2016

Wave Analysis:

USDJPY is currently trading along a very significant supportive trend line. We expect the current downward rally to continue to the lower side to form a double bottom with the daily support at 111.30. A break below this support level will call for further short positions with our target at 109.5. Expect the pair to rebound from 111.30 for us to continue long with wave (c) with our target at 116.67. This pair should be traded alongside other positively correlated pairs such as HKD/JPY, GBP/JPY, GBP/CHF, and EUR/JPY. These pairs have a strong positive correlation of up to +0.94 and are thus expected to have a similar price patterns. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.

Trade Recommendations:

Remain short with your first target at 111.30, a break below this support will call for further short positions with an ultimate target at 109.5. Buy upon a cleato rebound from 111.30 with your target at 116.67.

Graham Osano
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