USD/JPY Bears Lose Control at 78.6% Fibonacci

Chris Svorcik Elite CurrenSea

The USD/JPY made a bearish continuation after breaking below the support trend line (dotted blue) but the price has now reached a key reversal spot at the 78.6% Fibonacci support zone. Will the USD/JPY make a reversal or break the Fibs and confirm a downtrend?

USD/JPY

4 hour

The USD/JPY long-term direction could soon be decided. The breakout direction will be the decisive factor whether the price will enter into a long-term up or downtrend. For the moment, the current wave outlook is favoring the end of the wave 2 (pink) at the 78.6% Fibonacci retracement level after a bearish ABC (purple) pattern. A break above the resistance trend lines (red) could confirm that where a break below the 100% Fibonacci of wave 2 vs 1 invalidates this forecast.

1 hour

The USD/JPY seems to have completed 5 bearish waves (blue) at the most recent low, which in turn could complete wave C (purple) of wave 2 (pink). Currently, price action seems to be confirming a first bullish impulse (green waves) within a wave 1 (blue). If the price does complete 5 bullish waves, then an ABC retracement is likely to take place as part of a bearish correction in a wave 2.

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.

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.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.