FXStreet (Barcelona) - Daud Bhatti of ElliotWave-Forecast, has a bullish outlook for USD/JPY and anticipates the pair to test 119.01-119.46 area on a break above 118.69 levels.

Key Quotes

“Preferred Elliott Wave view is the dips in the pair should hold above 115.82 low for continuation higher. We think wave "W" ended at 118.83 and dip to 117.14 completed wave "X".”

“Expect a test of 118.69 to complete wave (w) before we get a pull back in wave (x) and higher again.”

“If 118.69 is exceeded, then pair could test 119.01 - 119.46 area which is 0.618 - 0.764 ext area of W-X before a pull back is seen.”

“Either way, we don't like selling the pair and expect dips to find buyers in 3, 7 or 11 swings looking higher toward 120.18 - 120.90 area to end a cycle from 115.82 low.”

“If 117.14 low or pivot breaks, then expect wave X to complete around 116.98-116.53 area. Even if pair follows this path, we would still favour the long side from there as far as 115.82 low & pivot remained intact because our Elliott wave cycles are supporting this view.”