Published 19th February 2019
An E-wave of minor degree could have ended last week. Price action needs to confirm the minor degree trend reversal.
The horizontal red dotted support has to break to hint a reversal. Doing that on increasing momentum strengthens the case for a reversal. Moreover, the blue dotted support has to get attacked in an impulsive manner. That action perpetuates the current wave structure as a corrective 3-wave zig-zag pattern of minor degree.
We remain strongly bullish on the JPY versus most currency pairs. The January selloff was not a capitulation selloff that came on top oversold conditions (like precious metals last summer). Instead, the selloff occurred on the back of an extremely bullish US Dollar sentiment and position picture.
The analysis above is a historical abstract of our USD/JPY Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.