The dip to this morning's low lines up with 2 wave relationships. I redrew the red 2-4 channel lines to 'frame' the potential stopping point for wave v.
The dip was anticipated (see "Channel Support for USDJPY at 124.50 and 123.00") and reached:
1) 38.2% retracement of wave iii
2) Equal wave measurement from the June 5 high to this morning's low
As a result, we have a tradeable low back towards 124.75-127. A move above 123.85 creates overlap (see purple dotted line) and seals in an equal wave pattern from the June 5 high. Equal wave patterns tend to be fully retraced.
Note the 2 higher probability options in the notes on the chart. The 2nd option leads to a very large top (see "How Much Juice is Left in USDJPY Bulls?")
The dip was anticipated (see "Channel Support for USDJPY at 124.50 and 123.00") and reached:
1) 38.2% retracement of wave iii
2) Equal wave measurement from the June 5 high to this morning's low
As a result, we have a tradeable low back towards 124.75-127. A move above 123.85 creates overlap (see purple dotted line) and seals in an equal wave pattern from the June 5 high. Equal wave patterns tend to be fully retraced.
Note the 2 higher probability options in the notes on the chart. The 2nd option leads to a very large top (see "How Much Juice is Left in USDJPY Bulls?")
Are you ready to learn Elliott Wave? Take our Free Elliott Wave Readiness Assessment: bit.ly/EWreadinessquiz2
www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
