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

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USDJPY Elliott Wave Analysis Trading Lounge Day  Chart, 18 January 24

U.S.Dollar/Japanese Yen (USDJPY) Day 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 Day Chart" dated 18 January 24, provides an extensive analysis of the U.S. Dollar/Japanese Yen (USDJPY) currency pair on a daily timeframe. The analysis is conducted using Elliott Wave theory, a methodology that seeks to identify and interpret repetitive wave patterns in financial markets.

The declared "Function" of the analysis is "Counter Trend," indicating a focus on identifying potential movements contrary to the prevailing trend. This type of analysis is crucial for traders looking to spot opportunities in corrective phases or potential reversals in the market.

The specified "Mode" is "Corrective," suggesting that the current market phase is seen as a correction within the broader context. Corrective waves are characterized by price movements that oppose the primary trend, offering traders insights into potential temporary interruptions in the market.

The primary "Structure" identified is "Blue wave C of X," indicating the current position within a larger Elliott Wave count. In Elliott Wave theory, sequences of waves are used to represent market trends, corrections, and reversals. The current focus is on the development of the C wave within the broader corrective structure labeled X.

The "Position" is noted as "Red wave C," signifying that the ongoing corrective move (Blue wave C of X) is part of a larger corrective pattern labeled as Red wave C. Understanding these hierarchical structures is fundamental for traders applying 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.

In the "Details" section, it is highlighted that "blue wave B of black wave X completed at 144.381." This suggests the conclusion of the preceding corrective wave, marking the commencement of the ongoing phase, Blue wave C of X.

The "Wave Cancel invalid level" is identified as "151.961." This level serves as a critical reference point; a breach of this level could invalidate the current wave count, leading traders to reassess their analysis and potentially indicating a shift in the anticipated market direction.

In conclusion, the USDJPY Elliott Wave Analysis for the daily chart on 18 January 24, suggests a counter-trend scenario with the ongoing development of a corrective wave (Blue wave C of X). Traders are advised to closely monitor the progress of this corrective move, with attention to the invalidation level at 151.961.

Technical Analyst : Malik Awais