FX.co ★ USD/JPY Elliott Wave Count for January 24, 2012

Market Overview
This week has started in a sideways range for USD/JPY, trading at a price of only 20 pips from 77.07 to 76.86 and finishing New York session slightly above 50 EMA at 77.02. The Bank of Japan left overnight interest rates at 0.10%, as expected. Today at the opening of London session we saw the dollar-yen pair pushing higher above 77.23. We expect to see this major testing new resistance at 77.50.

Important News

(USD) Richmond Manufacturing Index
(JPY) BOJ Press Conference
(JPY) Trade Balance

Support and Resistance
(S3)76.76 (S2)76.85 (S1)76.90 (PP)76.98 (R1)77.07 (R2)77.12 (R3)77.20

Elliott Wave Analysis for USD/JPY
The USD/JPY pair finishes corrective wave ii between 50-61.8% of Fibo retrace of wave i and starts new 5 waves for iii wave.
According to our wave rules and assuming that wave iii has already started, we can project our target points with Fibonacci extension (76.53-77.30-76.86) to 161.8% of wave i at 78.10.

Trading Forecast
Based on Elliott Wave Rules we can expect the trend to go higher during the next few days. That is why we can come to a conclusion that we should open Long positions at 77.45 with Stop Loss at 77.15 and Take Profit at 78.10.