? USD/JPY New Bearish Wave is Expected Soon ?

3 min read



Hi traders,

USD/JPY developed a bullish momentum during the last 3 weeks… It seems that the pair finished 5 waves down and this bullish momentum was part of the correction of wave A, waiting to start the bearish momentum of wave B.

We will review different scenarios as the pair can either bounce for a downtrend or expand the bullish momentum within wave A.

This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.

USD/JPY Arrives at Bearish Reversal Spot

As seen in the below chart, the pair had a strong downtrend by offering 5 bearish waves …then it was followed by a bullish momentum which could be part of wave A… the alternative is that it completed a bullish wave C within a larger wave 4 (ready for one more bearish wave 5).

In any case, the pair has now arrived at a bouncing spot which could be the start of new bearish momentum for wave B or wave 5… Here are the main conclusions:

  1. Seems that 5 Impulsive waves have been completed.
  2. The price reached wave 5 main target at -27.2%.
  3. So I expect a bounce to the downside around this zone.

So I expect that the pair has an appointment with the bearish momentum of wave B but still need developments to trade this pair, in the next paragraph we will discuss this development by using SWAT software.

USD/JPY SWAT Chart Present Divergence

Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart indicates a bullish momentum and needs some developments to confirm the bearish wave B start…  Here are the main developments to consider:

  1. There is bearish divergence which indicates that bullish momentum is getting weakened.
  2. Need price to break the 21Ema, 144 Ema, and the uptrend.

So in my view, traders should wait for the confirmation before trading this pair and look for sell opportunity only as it matches with the expected wave pattern.

Good trading,

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