USD/JPY Elliott Wave technical analysis [Video]

USD/JPY Elliott Wave technical analysis

• Function: Bearish Trend.

• Mode: Impulsive.

• Structure: Orange wave 3.

• Position: Navy blue wave 1.

• Direction next higher degrees: Orange wave 4.

• Details: The orange wave 2 of navy blue wave 1 appears completed, and now orange wave 3 is unfolding.

• Wave cancel invalidation level: 155.941.

Analysis overview

The USDJPY Elliott Wave Analysis for the daily chart evaluates the U.S. Dollar against the Japanese Yen, highlighting a bearish trend. The market is currently in an impulsive phase, indicating strong momentum in the downward direction.

The structure is identified as orange wave 3, forming part of a larger wave pattern known as navy blue wave 1. This suggests the market is in the early stages of a broader downward movement.

The analysis indicates that orange wave 2, a corrective phase within navy blue wave 1, has completed. This completion signals the beginning of orange wave 3, expected to push prices further down. The next higher degree is orange wave 4, meaning that once orange wave 3 completes, a corrective phase may follow.

A crucial level to monitor is the wave cancellation invalidation level at 155.941. If the price moves above this threshold, the current wave count would be invalidated, potentially altering the bearish outlook. Traders should closely observe this level to confirm the trend's continuation.

Conclusion

The USDJPY daily chart analysis suggests a bearish trend with impulsive momentum, currently in orange wave 3 of navy blue wave 1. The completion of orange wave 2 has set the stage for further downside movement.

The invalidation level at 155.941 serves as a key reference point for traders, indicating whether the bearish trend remains intact or a potential reversal could occur. Upon orange wave 3’s completion, the next anticipated phase is orange wave 4, signaling a possible corrective phase in the near future.

USD/JPY day chart

USD/JPY Elliott Wave technical analysis

• Function: Bearish Trend.

• Mode: Impulsive.

• Structure: Orange wave 3.

• Position: Navy blue wave 1.

• Direction next lower degrees: Orange wave 3 (started).

• Details: The orange wave 2 of navy blue wave 1 appears completed, and now orange wave 3 is unfolding.

• Wave cancel invalidation level: 155.941.

Analysis overview

The USDJPY Elliott Wave Analysis for the 4-hour chart evaluates the U.S. Dollar against the Japanese Yen, confirming a bearish trend. The market remains in an impulsive phase, reflecting strong downward momentum.

The structure is identified as orange wave 3, forming part of a larger wave pattern within navy blue wave 1. This indicates the market is still in the early stages of a broader downward movement.

The analysis suggests that orange wave 2, a corrective phase within navy blue wave 1, has concluded. With this completion, orange wave 3 has started, expected to drive prices further downward. The next lower degree also aligns with orange wave 3, reinforcing continued bearish momentum in the short term.

A crucial level to watch is the wave cancellation invalidation level at 155.941. If the price rises above this threshold, the current wave count would be invalidated, potentially reversing the bearish outlook. Traders should monitor this level closely to confirm the continuation of the bearish trend.

Conclusion

The USDJPY 4-hour chart analysis indicates a bearish trend with strong impulsive momentum, currently in orange wave 3 of navy blue wave 1. The completion of orange wave 2 has set the stage for further downside movement.

The invalidation level at 155.941 remains a key reference for traders, determining whether the bearish trend continues or a potential reversal occurs. The bearish pressure is expected to persist, reinforcing the ongoing downward trend.

USD/JPY four-hour chart

USD/JPY Elliott Wave technical analysis [Video]