Dolar A.S. / Yen Jepun
Panjang

Tradable Low Formed - Be Nimble

1 159
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?")

Penafian

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