Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
USD/JPY : A Bird in the Hand is Better Than Two in the Bush

USD/JPY : A Bird in the Hand is Better Than Two in the Bush

Jeremy Wagner, CEWA-M, Head of Education

Share:

We went long USD/JPY on Sept 22 on the dip down to 111.70 and moved the stop loss to 112.48 on October 30.

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.

Therefore, we will close the USD/JPY trade at market near 112.78 and be content with the profit secured. Moving on to other opportunities in EUR, AUD, CAD, and GBP.

Do you know why many traders lose? Find out here.

If you are new to trading FX, we have created this guide just for you.

To learn more about Elliott Wave theory, grab the beginner and advanced trading guide.

---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.

Other Elliott Wave forecasts by Jeremy:

GBP/USD Hanging Over the Edge of a Cliff

Short term EURUSD Pattern Hints at Bounce to 1.17.

USD/CAD dives 200 pips, will it continue?

AUD/USD searching for a bottom.

NZDUSD Elliott Wave Analysis: Temporary Relief Rallies

Jeremy’s favorite Elliott Wave Resources:

Elliott Wave Patterns: What is a Zigzag?

3 Elliott Wave Flat Patterns to Know and Understand

Learn more about the Elliott Wave patterns by receiving our beginner and advanced Elliott Wave guides.

Also, view these one-hour webinar recordings on the specific patterns:

Elliott Wave Impulse Patterns

Elliott Wave Zigzag Patterns

Elliott Wave Flat Patterns

Elliott Wave Triangle Patterns

Elliott Wave Diagonal Patterns

Starting Your Elliott Wave Counting

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES