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.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
  • Markets are trying to maintain a bullish tilt as a new week rolls around, a look ahead at the charts of the #Dow, #DAX, and #FTSE. Get your technical analysis on major world indices from @PaulRobinsonFX here: https://t.co/bYjRDvQsdM https://t.co/mbg0rUbv3K
  • Trade conflict is clearly awful for the broad world economy, but some countries are already benefiting from it. More stand to do so. Spotting them early could be profitable. Get your update on the #tradewar from @DavidCottleFX here: https://t.co/og0VAPAqwm https://t.co/xB8hYUj4OA
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
  • RT @HeathaT: The @USTradeRep "fact sheet" on the US-China deal is pretty light on details, but if you're looking for something written down…
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/1H5UASpHb7
  • What is the best time to trade #forex? Find out: https://t.co/M9R46rmPUK #tradingstyle https://t.co/k6z9p9v4nY
Will USD/JPY Break its Trading Range?

Will USD/JPY Break its Trading Range?

2018-01-03 21:44:00
Jeremy Wagner, CEWA-M, Senior Strategist
Share:

USD/JPY has been lacking inspiration lately. USD/JPY has been unable to penetrate the resistance trend line formed since 2015. As a result, the market may be trading on its heels for the first part of 2018.

The sentiment reading for USD/JPY is currently +1.5 that means 60% of traders are currently long. Sentiment is a good contrarian signal in that if most traders are long, we will look for a short trade.

The Elliott Wave model we are following illustrates we are in the middle of a zigzag pattern. Under the current pattern, we are looking for price to drop down towards 108 while holding below 114.

Get started learning about Elliott Wave. Grab the beginner and advanced Elliott Wave trading guide

USD/JPY Elliott Wave Count Jan 3, 2018

Will USD/JPY Break its Trading Range?

A nice support shelf has formed at 111.99 on the past three dips (see image below). As a result, we will look to initiate a breakout trade at 111.98 while placing risk on the trade near 113.80. The first target is 110 where half of the trade is closed out. A secondary target is at 108.

If price is successful on reaching 111.00, then we will move the stop loss to break even.

This trade yields a positive risk to reward ratio. Read why that is important in our Traits of Successful Traders research.

New to FX trading? We created this guide just for you.

Will USD/JPY Break its Trading Range?

---Written by Jeremy Wagner, CEWA-M

Jeremy Wagner is a Certified Elliott Wave Analyst with a Master’s designation. Jeremy provides Elliott Wave analysis on key markets as well as Elliott Wave educational resources. Read more of Jeremy’s Elliott Wave reports via his bio page.

USD/JPY and as well as EUR/JPY, GBP/JPY, and AUD/JPY were markets discussed in Jeremy’s January 3 webinar forecasting 2018 trends. Watch a recording by registering here.

Discuss this market with Jeremy in Monday’s US Opening Bell webinar.

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

Recent Elliott Wave articles by Jeremy:

2018 Forecast for EUR/AUD, GBP/AUD and AUD/JPY

Can Swiss Franc Outperform its Peers in 2018?

Bulls Excited About GBP/JPY Longer Term Elliott Wave Pattern

Elliott Wave Analysis: Crude Oil Price Bursts Higher in 5th Wave

Santa Brings a Gold Price Rally for Christmas

EURUSD Elliott Wave Pattern Looks to Higher Levels

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

DISCLOSURES

News & Analysis at your fingertips.