Tuesday, July 19, 2016

UsdJpy: How Long Will It Take This Imminent Correction?

On 15th July, I posted an update and gave a forecast that the bullish breakout we saw in Usdjpy since the second week of the month may pause with a correction before moving further up .A corrective dip to 102 price region was suggested. Review the analysis HERE .

The chart below was used.

And on the intra-day(15m) chart,

Price did react and spiked down to 104.6 (about 165 pips move) as price closed on a bearish note for the week.

On opening this week, price gaped up and seem to move up further in a wee-confined manner suggesting that the bulls are being cautious.

The chart above shows that the impulse wave is still intact but with little adjustment suggesting that a correction can still happen soon. The terminating sub-wave of the impulse is forming a diagonal pattern as shown closely by the chart below.


If price will terminate this way , it is important to note that the last two legs of the diagonal have to complete as indicated by the chart. A proper break-out downward will be a good signal that price could correct to 102-103 price levels.

We will take any consideration for this pattern if price rallies above 106.7. This means that we expect price to be contained below 106.7 as price completes the pattern.

Let me update you when the pattern is complete and give you the sell signal when it's ripe. Join us on our Skype Trading Room as we discuss trades from execution to termination . Join HERE

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