I was brought to the attention of USDJPY based off a friend's trade who is currently long and targeting 103. Curiosity got the better of me and I started scanning through the various time frames and the daily charts caught my eye.
In the chart below, we see a bearish Wolfe Wave being formed. So far, we have points 1, 2, 3 and 4 with price currently running up to make a peak at point 5 (which hopefully will be 103, for the sake of my friend).
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| USDJPY - Daily Charts, Bearish Wolfe Wave |
The Wolfe Wave's ETA and EPA line shows a 30th September with a price target of 90.529, which is quite interesting. What would make this trade ideal is to short it around 103 with a target of 91/92 which should make a very healthy profit.
For now, we'll continue monitoring this chart.
By adding the median line to confirm the current run up to point 5, we see the ML being broken. Depending on how long it takes, the possible target region for price reversal could be anywhere between 101.513 and 103.728. Of course a break of this region would invalidate our analysis.
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| USDJPY - Bullish Price targets |
Applying the same median lines to figure out an early reversal at point 5, we currently see price action moving within the Median line. It would be ideal to revisit this trade probably early next week especially when the central bank speeches are more done with in order to get a sense of direction and to pursue this trade further.
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| USDJPY - Monitoring Price Action |
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