USD/JPY Wave Analysis for December 18, 2012

USD/JPY Wave Analysis for December 18, 2012 2012-12-18	0/5

Show full picture USD/JPY Elliott Wave  Since our last analysis the USD/JPY pair was trading in a downward move like we expected, corrective a wave (coloured blue) of the bigger (2) wave (coloured green) was developing. Yesterday during the Asian and European sessions we could observe descending movement from 84.40 toward the 83.58 level and we can consider this move as the end of A wave. Therefore, during the early New York session this major pair did not manage to hold this level and the price started pushing higher reaching a new session’s high at 84.08 level. We can consider this move as the end of the B wave (coloured blue). At the moment the USD/JPY pair was trading around 83.90 level and we are expecting to see the price lower today. In accordance with our wave rules and taking into account that the wave 2 should retrace 50% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 83.21 (50% of wave 1). To reduce the risk, we can use invalidation at 84.36 level as stop loss.

Support and Resistance  (S3) 83.20 (S2) 83.49 (S1) 83.66 (PP) 83.95 (R1) 84.23 (R2) 84.41 (R3) 84.69

Trading Forecast   Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 83.80 with stop loss 84.36 and take profit at 83.21 are recommended.