Hi traders,
USD/JPY pair is in a strong downtrend but it made a deep bullish correction during the last week… The pair might have finished 5 waves down and the bullish price action could be part of wave A. Alternatively, price could still be in a bearish wave 4 as explained by Chris in his UJ wave analysis from yesterday.
We will review different scenarios as the pair can either bounce for a downtrend continuation or expand the bullish correction 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.
The wave A can either be a three wave structure or a leading diagonal pattern. It seems to me now that wave A is building a potential 5 wave pattern right now. Here are the main conclusions:
As shown in the below chart that we expect one more higher high presenting wave 5, and as known that wave 5 is also 5 waves, So I expect 5 waves up , please find the below main two points:
So long as the price did not break the bottom of wave 1 we are looking for price bouncing spot to trade wave 3.
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:
From my point of view, I will wait for buy opportunity only as its matches with the expected wave analysis and I will avoid any sell setups for now as we are waiting to trade bullish wave 5.
Good trading,
Ahmed
https://twitter.com/Adarwiah2001
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