If we swear by the general principles of the Elliott wave nature, I believe that an exit point will be flashing shortly  for the long USDJPY position which  will be around 106.40/60 , thus giving a risk reward of 1 : 4.

If we swear by the general principles of the Elliott wave nature, I believe that an exit point will be flashing shortly  for the long USDJPY position which  will be around 106.40/60 , thus giving a risk reward of 1 : 4.

 

The below shows a complete 5 wave impulsive pattern with alternate corrections between wave 2 ( combination  W-X-Y)  and wave 4 ( A-B-C ).

 

As per Elliott wave principle, an extension within wave 3 tends to adhere to the  guideline of equality , thus wave 1 could possibly be equal wave 5 pointing towards 106.40/60 range

 

The 5 wave impulse has been cruising within an upward channel and wave 5 is pointing towards 106.40/60 followed by 107.15 (Next target level).

 

Besides,  The intriguing watch out will be the positive correlation of EURUSD and USDJPY.

 

 

 

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