Technical Analysis
February 10, 2008 ProPipper.com USD/JPY Elliott Wave Count
by Ross Yamashita
Greetings.
We hope everyone had a restful weekend.
We’re posting this right before the opening of the Tokyo markets. Our analysis a few days back showed us that we’re in an impulse wave within another impulse wave.
As you recall, we’re forming Wave 2 of the smaller impulse wave. Once Wave 2 is completed, then we will start heading down to Wave 3. Wave 3 is our favorite wave to trade because of it movement.
We also provided some potential target points where you can short the pair. Depending on your Risk and money management, you can choose the entry point desired. Remember, use stops to protect your capital.
Once Wave 2 is completed, look for a good movement down.
We’ve heard all the arguments against Elliott Wave analysis and this is why we incorporate Elliott Wave into our analysis. With Elliott Wave analysis, we can get in front of the big movement, unlike many other technical indicators and moving averages. The problem with those indicators is that by the time you get the confirmation to trade, much of the movement has already passed you. However, keep in mind this is not an exact science, but based on probabilities so be sure to use protective stops.
Good luck.
