Elliott wave analysis of USD/JPY for January 11, 2021

analytics5ffbff607d8b9.jpgThe our January 5 post by clicking here) we said that USD/JPY was very close to completing a four year descending correction and start a new impulsive rally. A break above minor resistance at 103.90 would be the first good indication, that the correction had completed and the new impulsive rally is unfolding. In Far East trading the minor resistance at 103.90 was broken indicating the onset of a new impulsive rally higher towards 124.45 in the months to come. A break above key-resistance at 105.65 will confirm that a new impulsive rally is unfolding with the first target to look for seen at 111.72 and ultimately a rally to 124.45 should be expected.

Trading recommendation:

We recommended to buy upon a break above 103.90 and the stop should be placed at 102.50

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