USD/JPY Bearish ABC Zigzag Pattern Aims at 61.8% Fib

Dear traders, the USD/JPY made a bearish bounce at the top of the bullish channel. This could confirm the start of the final wave E of a larger triangle pattern.

Weekly chart

The USD/JPY could be building a bearish ABC zigzag pattern within wave E (purple) of wave B (red). The ABCDE triangle chart pattern (purple) could become invalidated (red x) if price action breaks below the bottom and 100% Fibonacci level.

Daily chart

The USD/JPY is likely to test the support line (blue) of the uptrend channel. A bullish bounce could indicate the end of wave A (pink) and the start of a wave B. A bearish breakout confirms (green check) the move lower towards the Fibonacci support of wave E vs D.

Good trading,

Chris Svorcik

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

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