USD/JPY Bullish Reversal After Completing Bearish Wave-C
|USD/JPY showed a strong bullish bounce after reaching 106.75 and the support trend line (blue). Is the USD/JPY ready for a larger bullish reversal?
USD/JPY
4 hour
The USD/JPY could be completing a larger bearish wave 2 (purple) pattern, which would indicate that a large bearish corrective price swing has ended and a new bullish swing could be starting. Although price is showing the first signs of a new bullish swing after breaking a local resistance trend line (dotted red), price still needs to break above the larger resistance trend line (red solid) of the downtrend channel. If price does push lower, then the 78.6% Fibonacci level of wave 2 vs 1 at 106.34 is expected to act as a support zone.
1 hour
The USD/JPY seems to have completed the bearish wave C (blue) as we expected in the previous wave analysis of the USD/JPY. Price has made a wave 4 (green) correction, which was followed by a final push lower via wave 5 of wave C (blue). Currently price is moving higher and showing strong bullish impulsive price action, which could be a wave 3 (purple) pattern.
The analysis has been done with the CAMMACD.MTF template.
For more daily technical and wave analysis and updates, sign-up up to our ecs.LIVE channel.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.