This 4-day USD/JPY consolidation has morphed from a 3-wave correction up to 115.50, into a 4-wave triangle that should remain below 114.50. At 12:15 p.m. ET, I am bidding just under the 114.00 figure level for a quick 3-wave move up towards 114.30 area. I believe this will end wave ‘e’ of ‘(4)’ at around 114.40 that should set the stage for the 113.80 break that we have been so eagerly anticipating all week.

Currently, I am offering USD/JPY every 5 points on the way up between 114.25-114.45 with stops above 114.60. The target is way downtown at 112.50. This is derived from a combination of 2.618 Fib Projection from above, and the width of this triangle,180 points, projected lower from the anticipated end of the wave ‘e’ of ‘(4)’, which I expect to be at 114.45.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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