USD/JPY Prepares for Wave 3 Impulse at 61.8% Fib

The USD/JPY is building a deep retracement within potential wave 2 (purple). The Fibonacci retracement levels of wave 2 vs 1 are support levels.

4 hour chart

The USD/JPY could confirm (green checks) the bullish reversal if price action is able to break above the resistance trend lines (red) or bounce at the support Fibs. A bullish swing could aim for the Fib targets. A break below the 100% Fib, however, invalidates (red x) the bullish wave outlook.

1 hour chart

The USD/JPY is building a potential wave 1-2 (blue) as long as price action stays above the bottom of wave 1 (blue) otherwise this small wave pattern becomes invalidated (red x). A bullish bounce or breakout confirm (green checks) the bullish wave outlook.

Good trading,

Chris Svorcik

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

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