USDJPY to restest 118.03 | 22 December 2016

22 December 2016, USD/JPY

USDJPY to restest 118.03

Wave Analysis:

Earlier today at 16:00, 4H, the pair rose drastically to the upper side and is currently retracing to the lower side but not with the same momentum with which it rose at 16:00, we expect the upward rally witnessed at 16:00 to have marked the beginning of a correction of the impulsive wave (c) and may retest 118.12 before we continue short with overall impulsive wave (c) towards 114.97. However, in case the pair end up breaking above 118.12, we'll wait for a clear breakout above 116.44 to give us the green light to continue long with an ideal target target at 124.00. Expect an exact similar wave count in USDCAD, NZDJPY, CADJPY and an exact opposite wave count in EURUSD, NZDUSD and GBPUSD.

Trade Recommendations:

If you're not short already, wait for minor pullbacks towards 118.12 to go short with an ideal target at 118.97. Buy positions are only recommended above 116.44 with an ideal target at 124.00.

Bob Stan
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