USDJPY – Bullish Minuette (v) – Divergence @ Support

USDJPY indeed rallied with a clean Bullish Swing as per the previously posted analysis for the USD/JPY – Bullish Impulse – Trend Reversal – Elliott Wave Analysis.

As the Swings occurred, it is now time to review the analysis and possibly determine where we might be standing with this interesting currency pair.

The current Wave Count states that we are possibly within a larger degree Minor 3 (green), with extensions in its Minute (blue) sub-waves.
Minute I (blue) continued on the up-side, as expected.
The Bullish Swing very much looks like it’s possibly going to continue until 115.50 Levels, where Minute I (blue) would end its Cycle.

USDJPY – 2H Chart:


Minute I (blue) – Wave Count & Elliott Wave Analysis:

  • Minuette (i) (black) unfolded with a 5 Wave Sequence bumping the 111.70 Resistance.

  • Minuette (ii) (black) retraced under the form of a Zig-Zag, with limited power, paving the way for the Bullish Impulse.

  • Minuette (iii) (black) unfolded with a Channel Extension within its Sub-Minuette Waves (light blue), shooting towards the 100% Fibonacci Extensions of Minuettes (i) & (ii) (black).

  • Minuette (iv) (black), due to the limited retracement in Minuette (ii) (black) and also due to the Law of Alternation principle, retraced more aggressively towards the 61.8% Fibonacci

Retracements of Minuette (iii) (black).

Minuette (iv) (black) unfolded as a Zig-Zag, with 100% Fibonacci Extensions equality between Sub-Minuettes A & C (red), showing an Expanded Flat in Sub-Minuette B (red).

Minuette (v) (black) – Projections:

  • Due to the sharp sell-off in Minuette (iv) (black), Minuette (v) (black) is expected to continue the Bullish Cycle for Minute I (blue) towards the 100% Fibonacci Extensions of Minuettes (iii) & (v) (black), which also represent the 150-161.8% Fibonacci Extensions of Minuettes (i) & (ii) (black).

  • A Bullish Divergence scenario can be seen on the Volumes which could be an indication that Bulls might be preparing to inject some liquidity. 

*The current 112.00 Levels are possibly going to be seen again before any bigger Rally would occur, as per the expected Retracement in Minute II (blue).

USDJPY – Possible Bullish Scenario:

Levels in Focus – 112.00 (or Market Execution if Aggressive)
Invalidation – 111.00
Target – 115.50

* Safety Measures:
– When in the green, the SL could be moved to break-even or in profit.

– If Conservative, one would wait for a Bullish Impulse confirmation and review after the local Correction, possibly spot a Flag Formation.

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

Many pips ahead!

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