USD/JPY Elliott Wave
Since our last analysis the USD/JPY pair was trading in a downward movement, impulsivee 3 wave (coloured blue) of the bigger (C) wave (coloured green) was developing. During the Asian and European sessions this major pair was trading in a sideways movement between 79.95 and 70.80 level and we can consider this movement as end of the corrective 2 wave (coloured blue). Therefore, during the early New York session the USD/JPY pair did not manage to hold this level and the price pushed lower reaching a new daily low at 79.32 level. We can consider this move as the end of the 3 impulsive wave (coloured blue). At the moment this currency pair is trading around 79.49 level and we are expecting to see the price higher when development of the 4 wave ends. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with take profit at 81.41 (100% of wave 1). To reduce the risk, we can use support at 79.10 level as stop loss.


Support and Resistance
(S3) 78.92 (S2) 79.18 (S1) 79.34 (PP) 79.60 (R1) 79.86 (R2) 80.02 (R3) 80.28

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 79.60  with stop loss 79.10 and take profit at 81.41 are recommended.