Look beyond ordinary analysis
The 10 minute chart:
Last week I posted a piece called “the case for Dollar Yen”
In the article I made the case that the decline over the last year is corrective in nature and that an end to the decline was coming soon,
With the powerful rally this week so far,
I think we can rightly say that the prolonged decline has ended.
This decline was in the region of 2400 points in all, and I think that It will be completely retraced in time!
With that backdrop in mind,
On Sunday night I opened a long position in Dollar Yen,
so far this week we have had a 500 point rally!
The position I opened is looking healthy right now, we will see how this develops in the coming days and weeks!
on the 10 minute chart you can see that i have labelled wave (ii) black at the low of last friday,
that would mean that the rally so far is wave (iii) black.
I don’t think the rally in wave (iii) black is finished either,
Wave (i) was around 400 points so I would expect wave (iii) to be in the region of (400*1.62) = 648 points.
That would project a top in wave (iii) at 10650 or so,
Remember we are only looking at a fraction of the future rally if this count is correct
Once wave (v) black is complete, that would bring us to the top of wave 1 blue,
which itself is part of a five wave structure!
This rally could be huge.
The hourly chart:
The hourly chart shows the progress so far,
Wave (i) black complete
Wave (ii) black, an expanded flat, complete,
And now into the power of wave (iii) black, and it hasn’t disappointed so far.
When wave 1 blue is complete, I expect the market to be somewhere in the region of the previous fourth wave in blue.
That 4th wave is shown on the daily chart at 11175, today the market is bouncing around the 10500 area, so we might have some way to go yet.
For the rest of the week I want to see the high of wave (i) black hold at 10330.
This high should not be broken for this count to remain valid,
Onwards and upwards!
The daily chart:
The decline since the high in June 2015 has taken the traced out a large irregular correction taking the form of a 3,3,5 wave structure,
This is labelled in green above on the daily chart.
This decline is viewed as a very large correction and should eventually be completely retraced and the high at 12600 should be broken.
currently the market has put in a very significant bottom and now looks set to rally powerfully.
2,932 total views, 15 views today
2,933 total views, 16 views today