USDJPY has rallied past initial resistance at 107.22 and is seen to be pulling back at the moment. In the short term, focus should remain for a potential rally towards 108.30, until 106.00 remains intact. The wave structure highlighted here since 111.75 highs is as follows: The drop from 117.75 through 106.00 was an impulse, Wave 1 on the chart. The subsequent rally reached fibonacci 0.618 resistance around 109.85, Wave 2 on the chart. If the above counts are correct, USDJPY is progressing lower in Wave 3 since 109.85. Bottom line: USDJPY needs to stay below 109.85 for the above structure to hold. We favor short term bullish move towards 108.30 against 106.00. Then reverse.
Long, stop @ 106.00, target @ 108.30.
Risk Disclaimer:
Trading Forex or any CFD products may not be suitable to all investors and they must evaluate their risk appetite. The above article should not be construed as a trading or investment advice as it is solely for education and information purpose only. Trading might incur a loss of capital and hence investors might be required to gain further knowledge regarding the risks involved. Leverage should be used wisely.
Long, stop @ 106.00, target @ 108.30.
Risk Disclaimer:
Trading Forex or any CFD products may not be suitable to all investors and they must evaluate their risk appetite. The above article should not be construed as a trading or investment advice as it is solely for education and information purpose only. Trading might incur a loss of capital and hence investors might be required to gain further knowledge regarding the risks involved. Leverage should be used wisely.