U.S.Dollar/Japanese Yen (USDJPY) 4 Hour Chart Elliott Wave Technical Analysis 18 January 24

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USDJPY Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 18 January 24

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

USDJPY Elliott Wave Technical Analysis

Function:  Counter Trend

Mode: Corrective

Structure:blue wave C of X

Position: Red wave C

Direction Next Lower Degrees: black wave Y

Details:blue wave B of black wave X completed at 144.381. Now blue wave C of X is in play and looking near to end . Wave Cancel invalid level: 151.961

The "USDJPY Elliott Wave Analysis Trading Lounge 4 Hour Chart" dated 18 January 24, presents a detailed analysis of the U.S. Dollar/Japanese Yen (USDJPY) currency pair using Elliott Wave theory on a four-hour timeframe. The analysis is oriented towards identifying potential market movements within a counter-trend context.

The declared "Function" is recognized as "Counter Trend," suggesting that the analysis is focused on movements that go against the prevailing trend. Counter-trend analyses are crucial for traders aiming to identify potential reversals or corrective phases in the market.

The specified "Mode" is characterized as "Corrective," indicating that the current market phase is viewed as a corrective movement. Corrective phases are typically characterized by price movements that go against the primary trend, representing temporary interruptions before the trend resumes.

The primary "Structure" is outlined as "Blue wave C of X," signifying the current position within a larger Elliott Wave count. The Elliott Wave theory posits that financial markets move in repetitive patterns or waves, and the analysis is presently focused on the development of the C wave within the larger corrective structure labeled X.

The identified "Position" is labeled as "Red wave C," indicating that the ongoing corrective move (Blue wave C of X) is part of a larger corrective pattern labeled as Red wave C. Understanding these nested structures is vital for traders practicing Elliott Wave analysis.

Regarding "Direction Next Lower Degrees," the analysis points to the anticipated "Black wave Y." This suggests that following the completion of the current corrective structure (Blue wave C of X), the next lower-degree corrective wave (Black wave Y) is expected to unfold.

The "Details" section notes that "blue wave B of black wave X completed at 144.381." This suggests the termination of the preceding corrective wave, marking the start of the current phase, Blue wave C of X.

The "Wave Cancel invalid level" is identified as "151.961." This level serves as a critical reference point; if the market surpasses this level, it would invalidate the current wave count, prompting traders to reassess their analysis and potentially indicating a change in the anticipated market direction.

In summary, the USDJPY Elliott Wave Analysis for the 4-hour chart on 18 January 24, indicates a counter-trend scenario, with the completion of a corrective wave (Blue wave B of X) and the current development of the next corrective wave (Blue wave C of X). Traders are advised to monitor the progression of this corrective move, with a focus on the invalidation level at 151.961.

Technical Analyst : Malik Awais