USDJPY Bounces From Wave Confluence - 119.40 Key Level

USDJPY has been stuck in a sideways consolidation. The move off the October 2 NFP low has an impulsive 5 wave look to it. The resulting correction lower from Oct 5 to today landed at a confluence of wave relationships near 119.40. We are seeing this reaction at 119.40 and one potential outcome in Elliott Wave Theory is for a drive higher to 120.50-121.30. Therefore, there is a positive risk to reward ratio trade if we use today's low as the risk.

The previous post on the USD/JPY has drifted lower so depending on your entry and stop you either have a small loss or a small profit.

Happy trading!