I have been looking to go long the USD/JPY for the past few days to reflect my belief that the SPX will rise strongly. On this yen pair, there has been a clear 5-wave bullish move, followed by a 3-wave corrective pattern which ended at 109.55. However, the rally since that point has been choppy and overlapping, untypical of a 3rd wave. This leads me to believe that the pair should drop soon to complete a larger WaveC, forming an irregular flat ABC correction. A break of the lower trendline at around 111.40 would make me confident in this scenario, and I would expect a move to around 109.50.
12/09/2007
Quick USD/JPY Short
I have been looking to go long the USD/JPY for the past few days to reflect my belief that the SPX will rise strongly. On this yen pair, there has been a clear 5-wave bullish move, followed by a 3-wave corrective pattern which ended at 109.55. However, the rally since that point has been choppy and overlapping, untypical of a 3rd wave. This leads me to believe that the pair should drop soon to complete a larger WaveC, forming an irregular flat ABC correction. A break of the lower trendline at around 111.40 would make me confident in this scenario, and I would expect a move to around 109.50.
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