USDJPY could be approaching a top soon. The indicates a probable bearish reversal is imminent. Price advances is in the last stages on an impulse wave. A bearish correction is expected soon based on 10 May USD JPY Elliott wave analysis.
10 May, AtoZForex - USDJPY has rallied close to 500 Pips since the time we notified you of a bottom. The bottom was caused by the completion of a long term double zigzag correction. This pattern didn't just complete but did at a very vital point-Fibonacci cluster level. When Fibonacci ratios measured from important pivot wave levels, are lined so closed together, we have what is called Fibonacci cluster. When a pattern completes at these clusters, their probability of success increase significantly. In an update on 25th April, we used the chart below to shows what was mentioned above.
The chart above shows a double zigzag pattern completed between 50%-61.8% Fibo-retracement of the bullish impulse move from September 2016 to late February 2017. Wave (Y) is also completing at 100% Fibo-projection of wave (W) from (X). There is a significant bullish breakout which indicate prices rallying further.
The italicized in the quoted statement above breathed confidence and precision. The message was straightforward. The breakout meant that price would rally further. Since the breakout, the rally has moved closed to 500 pips. Technical analysis is not 100% accurate including Elliott wave theory. When we find the right combinations, like Elliott wave and other tools like Fib-ratio analysis, we put the edge in our favor. We make huge profits. That's how we can make consistent profit- take small loses and make huge profits. The same setup was seen in EURJPY (moved close to 850 pips since breakout) and many others we discussed on this platform.
10 May USD JPY Elliott wave analysis: top approaching?
It looks like a new top is approaching as seen in the chart below.
An impulse wave is approaching the top. This could present another trading opportunity for sellers IF price completes and breaks below the channel. Sellers can sell the breakout or use the pullback-breakout method discussed in the last USDCAD update. The dip is expected to get to 110.7 or deeper.
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