? USD/JPY Bearish Impulsive Wave C Targets 107.50 Support ?

Dear traders,

the USD/JPY is showing corrective and choppy price action, which is probably explained by a complex WXY (pink) correction. A bearish breakout could confirm a move down to the 107-107.50 target zone.

USD/JPY

4 hour

The USD/JPY has multiple strong resistance trend lines (red) above it and a push higher is likely to bounce at the Fibonacci retracement levels of wave B vs A. A break above the 100% Fib level of wave B vs A, however, invalidates (red x) the expected ABC (purple) zigzag correction and could indicate an expanded wave X (pink). A breakout below the support trend lines (blue)could trigger a decline within wave C (purple).

1 hour

The USD/JPY seems to have completed multiple ABC corrections in recent history. The current wave B (purple) must test the previous top before it can be confirmed that the correction is an ABC flat. The alternative is a potential ABC zigzag. In any case, a bearish breakout (green check) is likely to create bearish pressure and send the USD/JPY lower.

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Good trading,
Chris Svorcik
Elite CurrenSea