UsdJpy Intra day Update.

Earlier today, we posted of how our elliot wave analysis could mean a turn around for Yen pairs. After a very impressive bearish strenght of the Yen, we expect a reversal of trend or at least a retracement. 

UsdJpy made a sharp turn around slightly below 126, typical of an impulsive move and now moving back in what looks like a corrective move.

We thought the correction will be shallow as it resisted around 124 (38.2-50% retracement of the intra day bearish move).

 

The market opened today with a gap down and since then, intra day price has adjusted and gone into a triangle congestion making room for a deeper correction upward to the region of 124.7. 

 

 

 

If price breaks above the triangle upside, the next level to watch out for is 124.7

If price breaks to the south of the triangle, that means we will retain the shallow correction and ride down.

We don't expect price to break above 126 unless there is still room for more bullish move and if it happens, so be it. 

 

We re-analyse and check the position of price in the long term view.