Good morning. I was looking at the movement which USDJPY is tracing right now and realized it was a flat. It is very likely to be just a correction and not a reversal. So the upward movement is supposed to resume some time from now.
We are in a ABC correction, 3-wave A, 3-wave B and tracing a 5-wave C down right now, target being 1.382 of A = 117.70. This is a flat correction, with a magic 0.886 retracement in B.
So present structural development made me think that the upward movement is not over, and we are going to see the completion of a full 5-wave impulse which started late 2011, which will become wave A of an upward correction following a nearly 40-year long impulse we and our parents could contemplate.
What this means in the short term: there will be a bounce upwards 2-3 days from now. In this movement we will possibly see a new top in the next month or so but it's unlikely to be the start of wave 5 - we need to respect some time proportions in order to keep "the right look" of the impulse and therefor need to allow the correction in w4 to last a bit longer.
The long-term timings of the development of the present structure in JPY are aligned with DXY: jan 2016 - completion of wave 4 and start of wave 5. Nov 2016 - completion of wave 5 and a substantial reversal.
We are in a ABC correction, 3-wave A, 3-wave B and tracing a 5-wave C down right now, target being 1.382 of A = 117.70. This is a flat correction, with a magic 0.886 retracement in B.
So present structural development made me think that the upward movement is not over, and we are going to see the completion of a full 5-wave impulse which started late 2011, which will become wave A of an upward correction following a nearly 40-year long impulse we and our parents could contemplate.
What this means in the short term: there will be a bounce upwards 2-3 days from now. In this movement we will possibly see a new top in the next month or so but it's unlikely to be the start of wave 5 - we need to respect some time proportions in order to keep "the right look" of the impulse and therefor need to allow the correction in w4 to last a bit longer.
The long-term timings of the development of the present structure in JPY are aligned with DXY: jan 2016 - completion of wave 4 and start of wave 5. Nov 2016 - completion of wave 5 and a substantial reversal.
