Elliott Wave chart analysis for USDJPY for 24th March, 2010. Please click on the charts below to enlarge.

Since 1975 the dollar/yen has continued on a long downwards trend. That trend may not be quite over yet, but an end may be in sight from a long term outlook.

Within cycle degree (aqua) wave 3 primary waves 1, 3 and 5 have very nice Elliott wave ratios. Wave 3 (maroon) is a very nice 2.618 the length of wave 1 (just 4.31 short), and wave 5 is just 7.77 short of 0.618 the length of wave 1. Primary wave 3 has a very clear third wave look.

Cycle degree wave 4 was a barrier triangle, ending primary E at 124.13 on 18th June, 2007. This triangle structure is confirmed by MACD (during a triangle formation you will see MACD hovering about zero).

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