Wednesday, June 3, 2015

What the Charts are saying about Yen

The Yen is at an interesting level now and so are currency pairs and other markets related to it. On a long note, it's been dipping since 2011, now at 2007 low.

 Markets go up and down, in spiral form. When the price of a particular instrument goes up, it's a normal thing to think of a dip. 


The question now is 'Where?' and 'When'?. 

Let me start this analysis from Nikkei 225 index which has a very strong negative correlation with the yen. 


Typically when Yen falls Nikkei rises and without any surprises, Nikkei has soared from 2007/08 to a 20 years high region. A fall is expected soon.


The charts below show the elliot wave count of Nikkei on the Monthly and Weekly time frames and are looking very strong on the upside. 


100% projection of its 5th wave from the 4th wave falls at 2165 and its neighborhood. 


The long term rally could end at this resistance level.

 Nikkei is expected to continue the rally to complete the last leg of the sub-wave of the long term bullish move.



The dip in Yen and rally in Nikkei are in very clear impulsive moves and a correction is expected targeting at least the region of the 4th wave of these moves.

Yen currency pairs like CadJpy, GbpJpy, AudJpy, NzdJpy and UsdJpy have been on a long term bullish impulsive move.

The UsdJpy is expected to follow this same pattern as shown in the chart below which also shows the possibe reversal zone by fibonacci extension tools.

AudJpy is illustrated in the chart below to complete the last leg of the long term impusive subwave. The possible region of reversal is indicated.

GbpJpy analytical chart is shown below.

And finally CadJpy



Updates will come as more price data are included to ascertain this analysis.

I will post updates.

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