Elliott ruling the waves for the USDJPY

 The USDJPY is starting to look interesting again. Taking a step back, the recent 2013 rally took the currency to the 38.2% retracement and previous cycle lows very nicely indeed and we've seen somewhat of a consolidation since then as we saw a lot of resistance at these levels.  The downtrend line is still valid but has yet to be tested properly.

The medium and shorter term graphs paint a very different picture of this currency pairing to the LT as the momentum is very much still on the upside with the slower MAs still pointing up, and bullish trend lines holding.  We also have some Elliot wave counts working as well implying that we are at the end of a 3-wave consolidation period after a 5-wave rally. (Indicated on the chart). Meaning that we could be in for some movement in the coming months.


This ties in nicely with the ST time horizon, which has a symmetrical triangle forming since the peak made back in May13.  The indicators are a bit useless for the time being and not telling us too much.








Charts are sourced from IG Index