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A breakout above the wedge

21 September 2016, USD/JPY

A breakout above the wedge

Wave Analysis

Earlier today, usdjpy traded massively long and even broke above the falling wedge. Although this pair is pretty much bullish on the daily chart, we choose to remain flat for now since the just witnessed breakout could be a mere knee jack reaction and may not go higher than 103.35. Instead of going long, we wait for a corrective rally towards 101.92 to give us low risk buy opportunities towards 103.35, any clear breakout below this level may lead to an acceleration to the lower side but should not go beyond 100.26. We look to trade this pair alongside CAD/JPY and NZD/JPY. These pairs have similar chart structure and set up and will have a similar price action during this intraday.

Trade Recommendations:

Remain flat for now and wait for low risk buy opportunities around 101.92. or sell below 101.92 with an ideal target at 100.26

Graham Osano
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