Advertisement
Advertisement

USD/JPY Awaits Last Lower Low Before Bull Reversal

By:
Chris Svorcik
Published: Mar 6, 2020, 07:29 UTC

USD/JPY made more bearish breakouts after pushing below support (dotted blues). The momentum remains strong and one more lower low is likely.

USD/JPY Awaits Last Lower Low Before Bull Reversal

Dear traders, the USD/JPY made more bearish breakouts after pushing below support (dotted blues). The momentum remains strong and one more lower low is likely.

4 hour chart

USD/JPY 4 hour chart

The USD/JPY is expecting to make a bullish reversal above the 100% Fibonacci level. This could confirm the completion of wave A (pink) and kick start a wave B retracement. If price action fails to bounce above the 100% Fibonacci level, then the wave E (purple) triangle pattern becomes invalidated (red x).

1 hour chart

USD/JPY 1 hour chart

The USD/JPY is likely to create a wave 4 (green) pullback as long as price stays below the 50% Fibonacci retracement level. A break above the 50% Fib invalidates (red x) the wave 4 (green). A new lower low could be followed by a bullish bounce as price completes the wave A (pink).

USD/JPY

Good trading,

Chris Svorcik

The analysis has been done with the help of SWAT method (simple wave analysis and trading)

For more daily technical and wave analysis and updates, sign-up up to our newsletter

 

About the Author

Chris Svorcikcontributor

Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.

Did you find this article useful?

Advertisement