USD/JPY ABC Correction in Bullish Wave 4 Pattern

Chris Svorcik Elite CurrenSea

The USD/JPY made a bearish bounce at the 21 ema zone resistance and trend line (red), which is expanding the retracement towards the Fibonacci retracement levels of wave 4 vs 3 (purple).

4 hour chart

The USD/JPY seems to be completing an ABC (blue) pattern within wave 4 (purple) but this becomes invalidated (red x) if price is able to break below the Fibonacci retracement levels of wave 4 vs 3. A bullish bounce and breakout could confirm (green check) this wave outlook and indicate a wave 5 higher.

1 hour chart

The USD/JPY will probably building a bullish pullback in a potential wave 4 (green) for one more lower low to complete the bearish wave C (blue). A bounce at the Fibonacci retracement levels of wave 4 vs 3 could confirm (green check) the pattern whereas a break above the 61.8% Fib invalidates (red x) the expected wave pattern.

The analysis has been done with the CAMMACD.Core System.

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Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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