USDJPY, Sat Oct 20, 2012

Hi Traders,

 

USDJPY, now at 79.27, moved exactly as predicted.

 

SITUATION

 

The uptrend is likely to continue for very long time although this week we will probably see a minor downtrend (see 4-hour and 1-hour  charts below) due to the unfolding of minor wave 4, which is usually a Zig-Zag to the downside. This action should take 1-3 days, then the uptrend should resume.

 

THE CHARTS

 

In the monthly chart below the currency pair has performed a breakout of the magenta channel. Minimum target at 94.00 (horizontal blue line). 

 

We're also plenty of secondary targets/resistances: 85.13, 88.98, 94.00, 98.94, 102.00 and 105.36, the ones in bold more interesting.

 

 

 

 

 

 

This situation is confirmed by the weekly chart below which shows the completion of wave 1 and 2 in blue, the latter completing 5 waves down. The chart aims now to a target of 85.13 

 

 

 

 

Having completed wave 1 and 2, the USDJPY is now working to complete wave 3 in 5 waves of a minor grade down (in royal blues and smaller font). More exactly, 3 of these 5 minor grade waves are now completed as in the daily chart below.

 

The next is wave 4 and it's a Zig-Zag made of 3-5 waves.

 

 

 

 

 

 

The 4-hour chart below shows the completion of wave 3 of a minor grade. This will be followed by wave 4 in a Zig-Zag made of 3-5 waves down. Targets at 78.86 but also at 78.66 and 78.55.

 

 

 

 

Finally the 1-hour chart below shows that, after completeng wave 3 up (in blue large font), we've done wave 1 (in magenta) sideways.

 

From now on the USDJPY will retrace down to 78.9 and 78.66 (blue horizontal line). Expect other 3 waves down.