the USD/JPY pair is shedding its long-term negative (bearish) structure after a strong bullish correction this week but what is next? The core of my article tries to address these key questions: is this a short or long-term correction and what is the expected move for the next upcoming days?
This article will discuss the expected scenarios for the pair using wave pattern, support and resistance, and SWAT software to find the best available opportunity.
As seen in the below chart, the USD/JPY pair is showing a strong bearish momentum from the beginning of this year. From my point of view, the pair completed 5 waves down and is now making a big ABC correction. I think that the pair is now in wave A and that it still has more to the upside.
In the next paragraph, we will discuss more in details the exacted move for this pair.
We need to zoom into smaller time frames to see the structure of the current wave A correction …
Here are the main conclusions:
Now its time to use SWAT software to see what is going and determine the most appropriate entry zones which match the expected wave pattern.
The SWAT chart is showing a bearish momentum and the chart is trying to get rid of the bearish momentum.
Here are the main points:
Once price completes the 5th wave within wave A, I am expecting 3 bearish waves within wave B and then another 5 bullish waves within wave C.