27.02.201313:42 Forex Analysis & Reviews: USD/JPY Analysis for February 27, 2013

USD/JPY Elliott Wave 
Since our last analysis the USD/JPY pair did not manage to finish corrective B wave (coloured purple), so today we need to focus on bullish movement as potential intraday trade. Yesterday, during the European session, we could observe a descending movement from 92.40 towards the 91.11 level and we can consider this movement as the end of the sub-wave (A) (coloured green) of the (B) wave (coloured red). Therefore, during the New York session, this major pair did not manage to hold this level and the price retraced back to 92.25 level. We can consider this movement as the end of the sub-wave (B). At the moment, the USD/JPY pair is trading around 91.75 level and we can expecting to see the price higher when development of the triangle (b) wave (coloured red) ends. In accordance with our wave rules and taking into account that the wave B should retrace 61.8% of the wave A , we can define the potential targets with measuring wave A with take profit at 93.13  (61.8% of wave A). To reduce the risk, we can use support at 91.12 level as stop loss.

Support and Resistance 
(S3) 89.52 (S2) 90.32 (S1) 91.14 (PP) 91.94 (R1) 92.76 (R2) 93.56 (R3) 94.38

Trading Forecast 
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 92.00 with stop loss at 91.12 and take profit at 93.13 are recommended.