15.11.201212:48 Forex Analysis & Reviews: USD/JPY Wave Analysis for November 15, 2012

Long-term review

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USD/JPY Elliott Wave
Since our last analysis the USD/JPY pair was trading in an upward move, corrective wave A (coloured green) of the bigger wave Y (coloured red) was developing. During the Wednesday’s European session we could observe strong ascending movement that bring this major pair to the 80.00 level. Therefore, during the New York session the USD/JPY pair continued trading in a bullish mood and the price reached a new 5 days high at 80.31 level. We can consider this move as the end of the 3 wave (coloured purple).Today this currency pair is trading around 80.90 level and we are expecting to see the price lower when development of the corrective 4 wave starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 80.28 (38.2% of wave 3). To reduce the risk, we can use resistance at 81.20 level as stop loss.

Support and Resistance
(S3) 79.05 (S2) 79.40 (S1) 79.62 (PP) 79.97 (R1) 80.32 (R2) 80.54 (R3) 80.89

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 81.00 with stop loss 81.20 and take profit at 80.28 are recommended.

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