U.S.Dollar/Japanese Yen (USDJPY) 4 Hour Chart Elliott Wave Technical Analysis 25 August 23

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USDJPY Elliott Wave Analysis Trading Lounge 4 Hour Chart, 25 August 23

U.S.Dollar/Japanese Yen (USDJPY)  4 Hour Chart

USDJPY Elliott Wave Technical Analysis

Function:  Counter Trend

Mode: impulsive in C of Z

Structure:WXYXZ

Position: Main Red wave 2

Direction Next lower Degrees:new down tren expected after 5th wave

Details: red corrective wave 4 completed at 144.595 , wave 5 of C nicely in play . Wave Cancel invalid level: 143.914

 

The USDJPY Elliott Wave Analysis for August 25, 2023, focuses on the 4-hour chart of the U.S. Dollar/Japanese Yen currency pair. This analysis offers valuable insights into counter-trend trading, particularly within the context of the impulsive wave pattern occurring in the C of Z sequence.

 

Counter-trend trading involves taking advantage of price movements that oppose the prevailing market trend. This is particularly pertinent within the impulsive wave pattern, which often consists of a series of price moves in the opposite direction to the main trend. In this case, the impulsive pattern is identified within the C of Z structure.

 

The analysis provides a detailed overview of the WXYXZ structure, a complex wave pattern that often forms within corrective phases. This understanding is crucial for traders looking to identify potential price reversals and counter-trend trading opportunities. It's highlighted that this analysis is centered around the counter-trend approach, indicating a potential shift in the market sentiment.

 

The main focus of the analysis is the development of the main Red wave 2, which is considered the corrective phase within the impulsive sequence. The completion of the red corrective wave 4 at 144.595 is a key factor in identifying potential turning points in the market. This, combined with the ongoing play of wave 5 of C, offers traders valuable information for making informed trading decisions.

 

Wave Cancel invalid level is a significant element emphasized in the analysis. This level serves as a threshold beyond which the current wave pattern would be invalidated due to unexpected price movements. Recognizing and respecting these invalidation levels is crucial for managing risk effectively and adapting trading strategies as needed.

 

The analysis extends its insights to the direction of the next lower degrees, indicating the possibility of a new downward trend after the completion of the 5th wave. Traders looking to capitalize on counter-trend opportunities should be mindful of this potential shift in market direction.

 

In conclusion, the USDJPY Elliott Wave Analysis for 25 August 23, provides traders with a comprehensive understanding of counter-trend trading within the context of impulsive wave patterns. By focusing on the WXYXZ structure, the completion of corrective waves, and the Wave Cancel invalid level, traders can enhance their decision-making process. However, traders are advised to complement this analysis

with other technical and fundamental indicators and to practice prudent risk management to ensure a comprehensive trading strategy.

 

Technical Analyst : Malik Awais