USD/JPY Goes Only One Way: Up

Hello, friend!

We've been watching the USD/JPY fluctuations closely for a long time and even had some success with it. So, I believe that it won't disappoint us at this time.

The truth is that the current chart of USD/JPY can be brought in a technical analysis textbook.

Picture 1. A chart of USD/JPY for 04.01.2019 - 04.02.2019.

Let's look at picture 1 and apply a simple technical analysis to it along with wave theory. We can see in this case that currently, it is possible to forecast "Upper" because USD/JPY just recently have crossed the resistance line and moved toward a 3rd wave, which indicates the growth.

Also, according to some technical analysis practitioners, a 3rd wave is usually the longest and the most profitable.

Picture 2. A chart of the USD/JPY price for 04.01.2019 - 04.02.2019, where "1" is a "double bottom" figure, "2" is a corrective figure, and "3" is a continuation of a trend.

In picture 2 we can see that the instrument worked out a classical scheme - the same as in technical analysis textbooks, where the development of a new trend begins with a classic "double bottom" (marked with the number "1"). It indicates quite strongly the maturation of an upward trend due to the second pit located higher.

Also, the 1st wave is marked with the number "1" as well. After the 1st wave, we see a corrective figure (number "2"), which indicates the imminent return of a trend. Just started 3rd wave is marked with the number "3". It is just crossed the resistance line and strengthened on a chart. However despite the fact that current situation looks quite convincing, we should confirm this state with other more fundamental instruments.

We will use the index of big traders for this in order to understand where cash flows are directed and whether the information about a new big trend can be confirmed.

Picture 3. The USD/JPY chart with the index of "big" traders for 04.01.2019 - 04.02.2019.

As we can see in picture 3, the whole trend coincides with the index of big traders, based on the JPY price. Such a situation confirms the graphical analysis performed before and clearly indicates the growth trend. So, our forecast for the near future: invest "upper" more.

My friend, thank you for being with us! Keep trading and earning money!