Simple Moving Averages Contain The Yen
The Usd/Jpy is trading back in the 90.00 area, flanked by the 20, 50 and the 100-day moving averages. This area has limited the pair’s moves. If Usd/Jpy finds the necessary momentum to push higher, it might reach the 92.50 area.
Overall View: Upward price action as long as the 88.13 support holds
4 Hour Chart Flows: Long. Price Points: 88.13, and 89.63 Looking for: Move higher
Momentum: The pair moved into long mode after the Bank of Japan instigated further quantitative easing that will weaken the Jpy over time. Right now, the market is still holding long-Jpy positions.
Elliott Wave: Usd/Jpy moved above the 90.67 wave A/1 top, which suggests that our recent correction shown in a black wave B/2 is probably finished. If that is the case then an impulsive upside structure should be shown in a higher black wave C/3, while the 89.63 support holds. Currently, the blue wave (ii) is searching for a low around the current levels from where a break into a higher wave (iii) is expected.
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