The USDJPY rose sharply in 2021 but has been on the rise in 2022. The pair traded at 115.11 on January 1, 2019. It traded in the neighborhood of 152.00 ten months later, in October. Given the Fed’s aggressive rate hikes and the BOJ’s stubbornly loose monetary policy, There was no reason to believe that trend will reverse soon.
It was there, but not in the places most people would look. While the majority of economists and market analysts focus on external news and macroeconomic data, USDJPY ‘s had been giving us a hint on its price charts. The following was shared to Elliott Wave PRO subscribers. October 17thThe pair was at 148.76, and it is still climbing.
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The Elliott Wave analysis reveals a certain logic to everything. Trends begin with a motive pattern – an impulse or a leading diagonal. Anything other than that means that the move we’re witnessing is most likely part of a larger corrective sequence. In the chart above you can see that there was a sudden surge in the second half 2016. It was however limited to three…