USDJPY downtrend UPDATED zones: UJ one more leg down to 110.40 ?
Updated
This is an update in my ongoing study and trades of USDJPY.
I study UJ as the ''barometer'' but I most often trade OTHER xxxJPY pairs.
So if UJ is dropping, and AU is also weak, then I trade AJ.
Or if UJ is climbing and say GU is strong, then I trade GJ.
This current plot is based on the assumption that the red 7.618 fib extension needs to be hit.
That assumption would be invalidated if the price pierces the 4.618 of same extension set.
The EW path drawn is a wild GUESS. But the target of 110.40 is pretty SOLID in my option.
Lets see how this plays out.
.
.
Background:
This UJ story starts in early October 2018, with my search for the mythical ''top''
As the downtrend progressed, I started looking for a ''final leg'' down
For a while it seemed we had found a temporary bottom:
But then came the Stock market swoon, so it seemed to need one more leg down yet
Then another bounce when Trump-Xi talks were rumored to be making good progress
After the FOMC rate decsion, I was shorting all JPY pairs based on this plan
The above plan hit all targets and THEN some. But I think it has one more leg to go before xmas per current plan:
I study UJ as the ''barometer'' but I most often trade OTHER xxxJPY pairs.
So if UJ is dropping, and AU is also weak, then I trade AJ.
Or if UJ is climbing and say GU is strong, then I trade GJ.
This current plot is based on the assumption that the red 7.618 fib extension needs to be hit.
That assumption would be invalidated if the price pierces the 4.618 of same extension set.
The EW path drawn is a wild GUESS. But the target of 110.40 is pretty SOLID in my option.
Lets see how this plays out.
.
.
Background:
This UJ story starts in early October 2018, with my search for the mythical ''top''
As the downtrend progressed, I started looking for a ''final leg'' down
For a while it seemed we had found a temporary bottom:
But then came the Stock market swoon, so it seemed to need one more leg down yet
Then another bounce when Trump-Xi talks were rumored to be making good progress
After the FOMC rate decsion, I was shorting all JPY pairs based on this plan
The above plan hit all targets and THEN some. But I think it has one more leg to go before xmas per current plan:
Trade closed: target reached
Target hit prefectly .
Note
Not only was Target hit, but was confirmed as Double Bottom and created a nice bounce. 
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