Wed, Mar 29, 2023 @ 16:57 GMT
HomeContributorsTechnical AnalysisDaily Technical Analysis: USD/JPY Breaks 110 Round Level And Arrives At Critical...

Daily Technical Analysis: USD/JPY Breaks 110 Round Level And Arrives At Critical 50% Fib

Currency pair USD/JPY

The USD/JPY broke below the support trendline (dotted green) and has now reached the 50% Fibonacci support level of wave 4 vs 3 (purple). This is an important decision zone because a bullish bounce would confirm the current wave 4 (purple) structure, whereas a bearish break below the 50% Fibonacci level would make a continuation towards the 61.8% Fibonacci retracement likely (plus a new wave structure).

The USD/JPY is building a 5 wave structure (purple) within wave 5 (orange) of wave C (brown). The 5th wave (purple) is slowing down its pace and moving lower in a small channel (orange/green lines).

Currency pair EUR/USD

The EUR/USD is pausing and moving sideways which could indicate that the 5th wave (orange) of wave 1 (green) has been completed. A break above the resistance trendline (red) could spark a retracement within wave 2 (green).

The EUR/USD did not build a 5 wave structure but rather an ABC (pink). This is probably part of a larger WXY (orange) correction, which is why the Fibonacci levels of wave X (orange) and the support trendline (blue) could provide bouncing spots.

Currency pair GBP/USD

The GBP/USD broke above the resistance trendline (red), which confirms the completion of wave X (blue) and the start of wave Y (blue). Price could now be heading higher to test larger resistance levels (brown/red), but a break above the previous top of the triangle (red line) would invalidate wave E (green).

The GBP/USD is probably building an ABC zigzag (orange). Within wave C (orange), there could be a 5-wave pattern (pink). The wave 4 (pink) becomes invalidated if price breaks below the top of wave 1 (green line).

Elite CurrenSea Accessible Forex Trading Systems & Education With over 30 years of combined trading experience, we design, test, and provide successful Forex, CFDs & Crypto trading systems and solutions for retail and institutional traders alike.

Featured Analysis

Learn Forex Trading