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Bearish Engulfing

19 October 2016, USD/JPY

Bearish Engulfing

Wave Analysis

Yesterday, the 16:00 4Hour's candle engulfed completely the previous 4hour candle which signaled an increase in sellers. As long as the level $104.01 protects the upper side, we expect a possible bearish wave count towards $101.72 or even lower. The current downward rally is the unfolding of the impulsive wave (c) to the lower side and may break below $101.72. This view can only be rendered futile in case the pair end up breaking above $104.01, if the latter is the case, then we expect a possible bullish price rally. Expect a similar wave count USD/CHF and EUR/JPY. These pairs will have a similar price action during this intraday.

Trade Recommendations:

Remain short with an ideal target at $101.72

Graham Osano
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