USD/JPY Elliott Wave Analysis: 27/12/2019 – 03/01/2020

The pair remains likely to grow. Estimated pivot point is at a level of 108.38.

Main scenario: long positions should be considered from corrections above the level of 108.38 with a target of 111.00 – 112.35.

Alternative scenario: breakout and consolidation below the level of 108.38 will allow the pair to continue declining to the levels of 107.70 – 107.06.

Analysis: Supposedly, a large correction has been completed in the form of wave (B) of senior level and ascending wave (С) is starting to form on the daily time frame, with the first wave 1 of (C) developing inside. On the H4 time-frame, apparently, the first wave of junior level i of 1 of (С) has formed and local correction ii of 1 has finished developing. Apparently, the third wave iii of 1 is starting to develop on the H1 time frame, with wave (i) of iii forming inside. If the presumption is correct, the pair will continue to rise to the levels of 111.00 – 112.35. The level 108.38 is critical in this scenario as the breakout will enable the pair to continue declining to the levels 107.70 – 107.06 as long as corrective wave ii of 1 continues forming.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.