USD/JPY Bullish Reversal After Completing Bearish Wave-C

Chris Svorcik Elite CurrenSea

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.

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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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