USD/JPY Bearish Wave 4 Prepares for Uptrend Above 110

Chris Svorcik Elite CurrenSea

The USD/JPY is building a minor and shallow pullback at the previous top. The wave patterns indicate a potential bearish ABC (green) for a strong move higher.

4 hour chart

The USD/JPY needs to break above the top (red) before a larger bullish trend continuation can be confirmed (green check). The main targets are the Fibonacci targets of wave C vs A. A break below the 50% Fib invalidates (red x) the expected wave 4 (blue) pattern.

1 hour chart

The USD/JPY is building a lengthy correction, which is typical for a wave 4 (blue). But the consolidation zone seems almost over, if indeed the wave C (green) pattern is complete. One last bearish push could send the USD/JPY lower towards the Fibonacci retracement of wave 4 vs 3 if price breaks below the support line (blue). A break above the resistance zone (red), however, could indicate the start of an uptrend.

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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