USD/JPY pair remains in a downtrend but the pair made a deep bullish correction during the last week… Actually, this correction seems to be part of wave A.
We will review different scenarios as we are looking now for the end of wave A and the start of wave B.
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.
As seen in the below chart, the pair is showing bullish momentum which could be part of the wave A correction… and wave traders know that wave A can be a three wave structure(5,3,5) or a leading diagonal. It seems to me that wave A here is three wave structure… Here are the main conclusions:
Let us take a deep look on wave 5 structural to figure the expected end of wave 5… as we know that Waves 5 always composed of 5 waves but it could be an ending diagonal, and it seems to me here that its 5 waves and here are the main points to consider:
Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… Here are the main conclusions to consider:
So one more higher high is expected, then a bearish correction as part of a wave B. If the bearish momentum is very strong, then a continuation of the downtrend is also a very real possibility and scenario. In that case, price could continue for an immediate lower low.