Written by www.ew-forecast.com |
Yen (USDJPY) reversed nicely lower in this week from above 100.50 area where a three wave rise, labeled as wave (b) appears complete. That was a second leg in wave 2 which is forming a flat correction. In flats you will typically see that wave (c) will find an end point around the wave (a) levels, which in our case comes in around 98.50. As such, we think that pair will test these levels in days ahead from where we will keep an eye on impulsive bullish reversal back to the highs. So larger trend is pointing higher which will remain unchanged as long as 96.77 low is in place. Break and close above 100.58 will suggest that wave 2 is already done.
USJPY 4h Elliott Wave Analysis
What is Flat Elliott Wave Pattern?
A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott Wave Pattern.
- Structure is 3-3-5
- Wave B terminates about at the level of the beginning of wave A
- Wave C terminates a slight bit past the end of wave A
- Appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes
Written by www.ew-forecast.com
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