πŸ„ USD/JPY Bearish Pullback Faces Support Fib Levels at 107.50 πŸ„

3 min read

Hi traders,

the USD/JPY made a bullish breakout above the resistance trend line (dotted red). The main question is whether price has started a bullish reversal or will price continue with the previous downtrend.

USD/JPY

4 hour

The current wave outlook for the USD/JPY favours a bullish reversal due to the fact that a wave 2 (purple) seems completed at the recent low around 106.75 and because price has made a decent bullish impulsive move up, which has been labelled a wave 1 (pink). The current pullback could therefore be a wave 2 (pink) but this wave 1-2 pattern is invalidated if price breaks below the 100% Fibonacci level of wave 2 vs 1.

1 hour

The USD/JPY is now building a bearish impulse but this could be explained by an impulsive wave C (purple). The Fibonacci levels of wave C vs A and 2 vs 1 are potential support and bouncing spots if this wave analysis is indeed correct.

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Good trading,
Chris Svorcik Elite CurrenSea

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