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USD/JPY: Elliott waves (Nov. 18)

Daily. Long horizontal correction continues. This fact creates some difficulties in determining the correct version of the layout, as there are different options. One of the options is at the picture. According to this scenario, we are now seeing the construction of wave D of (IV) and the market will increase slightly in this wave before beginning a final decline in wave E. Note, however, that this is not the only option, so let’s consider the alternatives.

Chart 1. Daily USD/JPY

Daily. According to second option, we are seeing the construction of wave [b], and when this wave is complete, a decline in the pulse wave [c] of 2 will begin. Let’s analyze the details of this scenario.

Chart 2. Daily USD/JPY

H12. The wave (E) of [b] is currently being formed. According to the rules of the wave analysis, the wave (E) shouldn’t go above the level of the wave (C). Therefore, the critical level is at 100.62: if the price rises above this level, the scenario will be abolished and we’ll stick to the first option.

Chart 3. H12 USD/JPY

Roman Petuchov for FBS

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