The USDJPY chart is a joy to put Elliott Wave trends to. The waves seem to respect fib levels well, and when we zoom out, the overall trend shows somewhat clear patterns.
The idea is that the overall trend is bearish - We are in Wave B of a correction on the weekly chart, which is looking to be a possible contracting triangle. Within that triangle, price is currently completing wave E. I am unsure exactly where wave E may end, but a fib extension level converges with the overhead trend line right around 113.077. We could very well hit the area of daily resistance at 112.558 and not get through it.
Once we complete this wave E, I expect the proceeding wave C to be a sharp change in direction DOWN. If we extend Wave C at 1:1 of Wave A, price could end up in the $86-95 range by mid 2020. Sounds crazy!
Daily View of the overall trend:
This was a fun one to draw out. What do you think? Please comment!
The idea is that the overall trend is bearish - We are in Wave B of a correction on the weekly chart, which is looking to be a possible contracting triangle. Within that triangle, price is currently completing wave E. I am unsure exactly where wave E may end, but a fib extension level converges with the overhead trend line right around 113.077. We could very well hit the area of daily resistance at 112.558 and not get through it.
Once we complete this wave E, I expect the proceeding wave C to be a sharp change in direction DOWN. If we extend Wave C at 1:1 of Wave A, price could end up in the $86-95 range by mid 2020. Sounds crazy!
Daily View of the overall trend:
This was a fun one to draw out. What do you think? Please comment!