USDJPY, Sunday OCT 14, 2012

 

 Hi Traders,

 

 

USDJPY Analysis.

To fully understand this analysis we need to check the USDJPY history. The chart below shows that the USDJPY was fixed at 360 Yen per US Dollar in 1949 till 1971.

This was followed by a 41 years drop till level 74-75 yen for a green back in recent times.

The chart shows that we completed 5 major waves down in Feb 2012. The end of the downtrend is confirmed by the last major wave (5) being sub-divided in 5 waves itself.

The chart below suggest that the first major resistance is around level USDJPY 101.00. Let's see weather this is true (next set of charts).

WHAT NEXT?

 

We have the chance of the best entry point for USDJPY. The Monthly chart below show the completion of the very last wave down and the start of the new uptrend with wave 1 and 2 in blue. The bottom of this little wave 2 is the very best entry point.

 

 

 

The weekly chart below show the completion of wave 1 and 2 up, the latter unfolded in 5 waves down.

And so the daily chart below. Note the very little ripples in blue at the bottom right hand side. Wave 1 and 2 (in font 10) and wave 1 and 2 (in font 8): this is the very best entry point.

Once again:  the 4hour chart below shows wave 1 and 2 (in font 10) and wave 1 and 2 (in font 8). This is the very best entry point!

Finally, the 1hour chart below indicates that the very last retracement wave 2 unfolded in 5 waves down but showed no real intention to retrace much.