The USD/JPY needs a bearish breakout below the support trend lines (blue) before the completion of wave B (blue) and the start of wave C (blue) becomes confirmed.
The USD/JPY wave pattern remains in an indecisive zone as long as price fails to break below the support lines (blue). The tentative price action could also mean that price will expand the wave B (blue) with a new high first before continuing lower with the larger bearish wave C (blue). The key aspect remains whether price will break above resistance (red) or below support (blue).
The USD/JPY is building a bear flag continuation chart pattern. A break below the flag pattern confirms a downtrend resumption, which should aim for the Fibonacci target levels of wave C vs A and Y vs W. Till now this pair has been choppy and corrective which could either be explain by an ABC (orange) in wave 2 (green) or a potential reversal and deeper wave B (blue) retracement.
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.
Elite CurrenSea Training Program(s) should not be treated as a recommendation or a suggestion to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative; such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Elite CurrenSea nor its representatives are licensed to make such advisements. Electronic active trading (trading) may put your capital at risk, hence all trading decisions are made at your own risk. Furthermore, trading may also involve a high volume & frequency of trading activity. Each trade generates a commission and the total daily commission on such a high volume of trading can be considerable. Trading accounts should be considered speculative in nature with the objective being to generate short-term profits. This activity may result in the loss of more than 100% of an investment, which is the sole responsibility of the client. Any trader should realise the operation of a margin account under various market conditions and review his or her investment objectives, financial resources and risk tolerances to determine whether margin trading is appropriate for them. The increased leverage which margin provides may heighten risk substantially, including the risk of loss in excess of 100% of an investment.