Guest Commentary: Short-Term Elliott Strategy for USD/JPY
The current Elliott wave structure for USDJPY remains bullish following the corrective decline from January 2 to February 3, 2014. Since February 3, the pair has been drifting higher and now shows three waves up from the low at 101.18.
Following a pullback towards the 102.05 - 102.32 region, expect further USDJPY strength (toward 104.21 - 104.93) to complete a cycle from 100.73 (the Feb. 3 low).
We don't like selling USDJPY at this juncture and instead favor buying dips in three, seven, or 11 swings as long as the 101.18 pivot low remains intact. There should be no strong selling in USDJPY until price has reached the 104.21 - 104.93 area.
By Eric Morera of Elliottwave-Forecast.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.