USD/JPY wave analysis for December 2, 2011
Wave dimension analysis:
Yesterday’s USD/JPY slight movement from the reached high can probably be interpreted as an attempt to form a 5-wave structure of the future 1st wave (or a) of the new trend downside section. If so, the first target for this 1st wave will be 77.20 or even 76.50. At the same time the pair still has a chance to resume upside movement in favour of the US currency. In the meantime the whole upside section formed after November 18 can appear the beginning of a new continuous uptrend.
General conclusion and trading recommendations:
At the moment the price is in a local downside movement thus probably forming the first wave of the trend downside section. In general we can spot some uncertainty, as with other currency pair. Current movement can reach 77.08 or Fibonacci 23.6% level. In case this assumption is correct an upside correction against the 5-wave structure will follow. However the pair remains not quite suitable for trading.
Performed by Александр Днепровский, Analytical expert
InstaForex Companies Group © 2007-2011
Jenis analisis: Wave analysis
Experience: 4 years
Analytical Credo: No information in english