USDJPY fell from our pre-determined top giving us yet another perfect forecast. The dip was expected to be a correction. Is the sharp correction about ending for price to resume upside?. The following gives a balanced view based 23 May USD JPY Elliott wave analysis?
23 May, AtoZForex – In the last update, we noticed price was about peaking. With Elliott wave theory and the Fib-ratio analysis, it is very possible to know where price peaks or bottoms. This is not perfect but to a large extent, can be very helpful with confirmation from price. When we notice these peaks or bottoms by identifying Elliott wave patterns, we then wait for price to confirm by moving in the direction of the forecast. One of the methods we often use is the breakout of a trendline or channel line. In an update, we used the chart below.
The top was approached, hit and price turned back just as exactly as we wanted to see it. It is important to wait for price to connect to us before we connect to it. Price did go down as we notified you with the the chart below in the last update.
Price hits a top at 114.38 and broke below which presented a bearish opportunity for intraday sellers. This dip is expected to continue as we figure out where the next bottom will be. The Elliott wave theory with other supporting technical tools can help to identify the next bottom.
The chart above shows how price reacted after the breakout. A 3-wave correction was expected. Price hit our bearish target and dipped below it slightly. Do we have the next bottom in sight? The chart below shows our latest wave update.
23 May USD JPY Elliott wave analysis: another bottom?
The chart above shows a probable end to the a-b-c zigzag correction and price showing some signs of bullish continuation. A dip below 110.82 and 110.20 will lead to more bearish move. A break above 111.7 should be enough to confirm the expected bullish resumption. If price rallies above 111.7 and eventually above 114.5, we can then say we have successfully picked a bottom at 110.20. More updates will come later.
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