IG Client Sentiment is neutral. The sentiment reading is currently near parity this week. Now, with a reading of +1.01, we would like to see a material move above +1.10 or below -1.10 to use this as a part of the analysis. Follow the live sentiment reading here.
The current price action in USD/JPY opens the door for a larger correction to around 112.00. The USD/JPY correction might not dig much deeper than our stop loss. However, the probabilities of the original trade have shifted more so to the downside and we will exit the party now with USD/JPY trading near 112.78 with just over 100 pips of profit.
USD/JPY Intraday Chart November 15, 2017
We have grown concerned because some other JPY cross pairs are exhibiting the potential for deeper corrections. For example, AUD/JPY reversed near the 61.8% Fibonacci expansion and has now broken below the support trend channel.
Additionally, GBP/JPY and EUR/JPY appear to have some deeper corrections coming as well. Therefore, what is the common thread between each of these markets? The Japanese Yen and increased probability of strength to come.
EURJPY appears poised for a wave (c) correction lower.
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---Written by Jeremy Wagner, CEWA-M
Jeremy is a Certified Elliott Wave analyst with a Master’s designation. This report is intended to illustrate how Elliott Wave Theory can be used to identify potential patterns of trading opportunities.
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