Greetings.
We hope everyone is having a great trading week thus far.
Let’s pull up the USD/JPY hourly chart. We have a couple different wave counts over different time frames but it’s nice when they all correlate with each other.
For the shorter term, look for a continuation of the movement up. However, for the longer term analysis, once the bullish retracement is over, look for a nice movement to the short side.
Looking at the current wave we’re in, if it starts to get steeper to the upside, then that will potentially be an Ending Diagonal (ED) and once the ED completes, it will drop off sharply and steeply. In the larger picture on the hourly chart, it looks like we may be in a corrective Wave 4 so again, once it completes, we will see a continuation down into Wave 5.
If you’re currently short this pair and am in some profit, you may want to think about protecting some profit.
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Good luck with trading and always be sure to apply your own analysis and use your money management.
