USDJPY; The Bullish Wave Caused By A Wedge
Mar 12 2021
USDJPY has been in a downtrend since March 2020, which resulted as a correction of the impulse occurred during the Covid-19 crisis as during risk-off environment the yen becomes a safe heaven causing USDJPY to lose approximately 900 pips.
Despite the move down being quite choppy, our analyst identified an ending diagonal which in Elliott Wave terms is an indication of an imminent and strong reversal. Based on candlestick formation, the price structure and personality of the move, our analyst noted on January 12 the following :
»If we consider current break above strong weekly trendline plus other evidence, then we can easily confirm a potential bottom and bullish reversal." .” «
USD/JPY Jan 12 2021
The reversal didn’t take much to come. As you can see from today’s chart it was also strong as expected. Once again the Elliott Wave Theory managed to provide us an edge to trade the live markets managing risk wisely. Diagonal are very good EW structures to trade, as they are very easy to identify and the outcome is always the same. The wave count suggests that we are in an impulsive bullish sequence, meaning that the move up from the January lows should be in five waves. So far the aggressiveness of the move confirms the bias, as we were in a third of a third which is very well known for being an explosive move.
Trade wisely and stay tuned for the next update!
Jan 12 2021 Article; published on tradingview
New York time: 00:00:00
Local time: 00:00:00
©2010 - 2020 ew-forecast.comDesign: VOBI