The USD/JPY bearish break below the support trend line (blue) invalidates the current wave pattern and could indicate a completion of the larger wave 1 (light purple) at the recent high.

The USD/JPY is building an impulsuve breakout above the resistance trend lines (dotted) which could indicate a wave 3 (blue) pattern. An immediate bullish continuation could see price move towards the 261.8% Fibonacci target of wave 3 vs 1 whereas a retracement could see price test the Fibonacci levels of wave 4 vs 3 (blue). A bullish bounce could see price move up as part of a wave 5 (purple) in wave 3 (pink).

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The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces. One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective. As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication. The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit 1from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions. In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan - on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.


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