🌊 USD/JPY Bullish Breakout Above 109 Confirms New Uptrend 🌊

3 min read

Hi traders,

the USD/JPY has broken above the resistance trend lines (dotted red) and an uptrend continuation is likely IF price manages to also break above the key 138.2% Fibonacci retracement level at 108.90.

USD/JPY

4 hour

The USD/JPY could be building a bearish ABC (purple) pattern if price bounces and reverses at the 138.2% Fibonacci level. A break above this level, however, invalidates the current ABC pattern and makes it likely that the wave 2 (pink) has already been completed at the recent bottom (where wave A purple is now). A bullish breakout and continuation, either immediately or after a deeper retracement in wave 2, is likely to be an impulsive wave 3 (purple).

1 hour

The USD/JPY could be building a bullish ABC (blue) pattern within the wave B (purple) but if this wave pattern becomes invalidated, then the bullish wave count becomes the main analysis with price building multiple 5 wave patterns. It is also important to keep an eye on the Fibonacci retracement levels of wave 4 vs 3 because if price reverses at these levels, then it could indicate a wave 4 (orange) and more expected upside.

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Good trading,
Chris Svorcik Elite CurrenSea

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