The USDJPY Elliott Wave Analysis for the daily chart identifies a bearish trend for the U.S. Dollar against the Japanese Yen. The movement is categorized as impulsive, indicating strong downward momentum. The current structure is recognized as orange wave 3, a segment within the broader navy blue wave 3 sequence. This setup suggests an active and strengthening bearish phase, with orange wave 3 now progressing after the completion of orange wave 2.

The upcoming move at the lower degree is anticipated to continue within orange wave 3, supporting the ongoing bearish outlook. The end of orange wave 2 signals the conclusion of the corrective phase, paving the way for further downward movement. A key invalidation level to monitor is 145.950. If the market reaches or exceeds this level, it would invalidate the current bearish wave structure and hint at a reversal or a complex correction.

The analysis highlights the prevailing control of sellers, with the impulsive trend nature suggesting persistent downward pressure. Traders should seek confirmation of the bearish trend continuation, while being alert to any breach above the invalidation level that could revise the market view. The daily chart offers a larger context, indicating that the bearish trend remains intact unless critical resistance levels are surpassed.

In conclusion, USDJPY shows a bearish bias on the daily chart, driven by orange wave 3 within navy blue wave 3. The invalidation level of 145.950 remains pivotal, as surpassing this level could alter the wave count scenario. This analysis offers a methodical approach to understanding the market's trajectory, emphasizing the significance of crucial price levels in validating the bearish trend.

USD/JPY Elliott Wave technical analysis

Function: Bearish Trend.

Mode: Impulsive.

Structure: Orange Wave 3.

Position: Navy Blue Wave 3.

Direction next lower degrees: Orange Wave 3 (started).

Details: Completion of Orange Wave 2 observed; Orange Wave 3 now active.

Wave cancel invalidation level: 145.950.

The USDJPY Elliott Wave Analysis for the 4-hour chart shows a bearish trend for the U.S. Dollar against the Japanese Yen. The market structure is described as part of an impulsive downward move, specifically within orange wave 3, nested within a broader navy blue wave 3. This setup signals a continued bearish trend, with the next lower degree move expected to be the progression of orange wave 3, which is already underway.

The previous phase, orange wave 2, is regarded as complete, and the market is transitioning into orange wave 3, indicating increased downside potential. A critical invalidation level to watch is 145.950. Should the price meet or exceed this point, it would invalidate the current bearish wave count, suggesting a possible shift in the market structure.

The analysis maintains a bearish function, with the impulsive mode reflecting strong downward momentum. Being positioned within navy blue wave 3, and with orange wave 3 just starting, indicates that sellers dominate the market and further declines are anticipated. Traders are encouraged to seek confirmation of the bearish continuation and closely monitor the invalidation level to effectively manage trading risks.

In conclusion, the USDJPY remains in a bearish phase, with the current wave count pointing towards further downside movement as part of orange wave 3 within the larger navy blue wave 3 structure. The pivotal level to monitor is 145.950, as breaching this level could negate the current bearish outlook. This analysis provides a clear understanding of the market structure and potential future movements.

Technical analyst: Malik Awais.

USD/JPY Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.