Elliott wave outlook for GOLD and USDJPY
My Bias: LONG
Wave Structure: rally in wave [C]
Long term wave count: wave [C] is underway, upside to above 136.00
Important risk events: JPY: N/A. USD: FOMC Member Fischer Speaks, Current Account, FOMC Member Kaplan Speaks.
USDJPY rose into resistance today in a possible wave 'b' of an expanded flat correction in wave 'ii' brown.
I think fridays decline was too short and sharp to be counted as a completed wave 'ii'.
So I am watching for another decline in wave 'ii' brown to complete three distinct waves.
Another drop below support at 110.64 will do the trick.
Watch for wave 'c' pink to complete at about 110.26, the 50% retracement level of wave 'i' brown.
The 4hr momentum setup is very bullish right now,
With both an RSI and MACD buy signal in place.
So any declines will be brief.
My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1550
Important risk events: USD: FOMC Member Fischer Speaks, Current Account, FOMC Member Kaplan Speaks.
GOLD reached the lower target at 1245 today.
The price now sits at 1243.50 as I write.
Wave 'ii' brown has completed a three wave decline off the recent high
the trend channel has been met once more.
And momentum is signalling an oversold extreme again!
I am now looking for the formation of a bullish higher low off nearby lows.
A break of 1259, the low at wave 'a' pink,
will be the initial signal that GOLD is about to turn up again into wave 'iii' brown.
The low at 1214 must not be broken from here.