USDJPY moved down in three waves (a)-(b)-(c) from March high. The decline in wave (c) unfolded as an ending diagonal pattern which usually indicates that the end of a trend.
The Elliot wave guideline on trading ending diagonal suggests that the price should move at least to the start of the diagonal. In this case, the start of the diagonal is 109.379 marked in black.
The wave count is not the only evidence that supports taking a long position in UJ. Prices and MACD had been diverging since April - an indication of decreasing downside momentum, signaling a weakening downtrend.
So, a bullish Elliot Wave pattern combined with a bullish divergence makes a stronger case to long USDJPY.
What's your view on USDJPY?
The Elliot wave guideline on trading ending diagonal suggests that the price should move at least to the start of the diagonal. In this case, the start of the diagonal is 109.379 marked in black.
The wave count is not the only evidence that supports taking a long position in UJ. Prices and MACD had been diverging since April - an indication of decreasing downside momentum, signaling a weakening downtrend.
So, a bullish Elliot Wave pattern combined with a bullish divergence makes a stronger case to long USDJPY.
What's your view on USDJPY?