Elliott waves analysis – Short the US Dollar around 109.295

USDJPY – Down

Wave Analysis

The previous day’s candle was a perfect bearish engulfing candle and signals a possible increase in the number of sellers, but is still above the main support 108.780. We expect further bearish corrections towards this support and should break below it towards 107.743. This downward rally is the unfolding of a corrective three wave cycle with an ultimate target at 107.743. If you’re not already in a short position, you could remain flat temporarily and wait for a pullback towards 109.295 to pick a low risk short position with your target at 107.743.

Trade Recommendations:

Short the US Dollar around 109.295 towards 107.743

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