USD/JPY – Bullish Impulse – Trend Reversal – Elliott Wave Analysis

USD/JPY seems to be finalizing the Bearish Swing for Corrective Minor 2 (green) Wave.

As per the current Wave Count and Analysis, the focus would be on a BUY Set-Up due to the fact that Dollar-Index (DXY) might have bounced from Significant Levels and might have confirmed a very possible Trend Reversal.

Corrective Structure Bullet-Points:

• Minor Wave 2 (green) unfolded with its Minute (blue) ABC Structure and stopped at the 78.6% Fibonacci Retracements of Minor 1 (green).

• Minute A (blue) presents an extension in its Minuette (C) (black), hence the reason for Minuette C (blue) being limited towards the 61.8% Fibonacci Extensions of Minutes A & B (blue).

• Minute B (blue) unfolded with a Simple Flat Structure and Minuette (iv) (black) inside Minute C (blue) unfolded as an Expanded Flat Structure.

USD/JPY - 2H Chart:

USD/JPY – Speculative Bullish View:

Bullish Minute Wave I (blue) reversed from the 109.10 Levels due to the Bullish Divergence and delivered so far the first piece of the puzzle, with Minuette (i) (black) unfolding as a Wedge inside a Channel.

Minuette (ii) (black) reversed at the 61.8% Fibonacci Retracements of Minuette (i) (black), therefore these Levels are to be watched closely, as the Bulls might have joined, since a Support would be confirmed.

USD/JPY – Levels in Focus:

Possible Buy Level – 109.80

Invalidation – 109.00 & 108.00

Target 1 – 112.60 or 113.35

Target 2 – 114.40 or 115.00

* Safety Measures:
– When in the green, the SL could be moved to break-even or in profit.
– If Conservative, one would wait for another Impulse confirmation and review after the local Correction.

* The above Analysis does not act as an investment advice and should be treated as market commentary.