Exit the USDCAD short that we entered last Wednesday for a 300+ pip gain. Although we expect price to come under .9755, the low this morning is close enough at .9759. The new idea is to play a USD recovery against the Yen. The USDJPY has held above 106, which is round number support and a reaction low from earlier in the month.
The entire rally from 104.97 to 108.59 could have completed a larger correction but we subjectively favor a larger rally because of various sentiment measures. A large complex correction may be unfolding with the drop from 108.59 as wave X in a W-X-Y. If this is the case, then price should put in a bottom soon and begin a rally that reaches roughly 110. Be sure to visit the Elliott Wave forum for trading ideas and updates to this pattern.
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