U.S. Dollar/Japanese Yen (USD/JPY) Forex Elliott Wave Technical Analysis

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USD/JPY Elliott Wave Analysis: Day Chart

U.S. Dollar/Japanese Yen (USD/JPY) Day Chart

USD/JPY Elliott Wave Technical Analysis

Function: Trend
Mode: Impulsive
Structure: Navy Blue Wave 1
Position: Gray Wave 1
Next Higher Degree Direction: Navy Blue Wave 2
Details: Navy Blue Wave 1 is in play as a new downtrend.
Wave Cancel Invalid Level: 162.039

The USD/JPY Elliott Wave Analysis for the daily chart aims to understand the current trend and wave patterns. This technical analysis looks at market movement in a trend function, indicating a continuation of the current market direction.

The primary wave structure considered is Navy Blue Wave 1, which marks the beginning of a new trend phase. This phase is impulsive, meaning the market is moving in a strong, definitive direction rather than undergoing corrections. The market is positioned in Gray Wave 1 within this larger Navy Blue Wave 1 structure, indicating the early stages of this new trend.

The next expected direction in the wave structure is Navy Blue Wave 2, which follows the completion of Navy Blue Wave 1. This suggests that after the current trend phase, the market will enter a corrective phase marked by Navy Blue Wave 2. This phase will likely involve a pullback or consolidation before the trend continues.

A critical detail in this analysis is the wave cancel invalid level set at 162.039. This level is significant because it serves as a reference point for validating or invalidating the current wave count. If the market price moves above this level, the current wave analysis would be invalid, necessitating a reassessment of the market's condition. This invalidation level is essential for traders as it helps manage risks and ensure the accuracy of the wave count.

Summary:

• The USD/JPY daily chart analysis identifies the market as being in an impulsive trend phase, specifically within Navy Blue Wave 1, positioned as Gray Wave 1.
• The analysis anticipates the next phase to be Navy Blue Wave 2, a corrective phase following the current trend.
• The wave cancellation invalid level at 162.039 is crucial for maintaining the validity of the current wave analysis and for effective risk management.

 

USD/JPY Elliott Wave Analysis: 4-Hour Chart

U.S. Dollar/Japanese Yen (USD/JPY) 4-Hour Chart

USD/JPY Elliott Wave Technical Analysis

Function: Counter Trend
Mode: Corrective
Structure: Orange Wave 2
Position: Navy Blue Wave 1
Next Lower Degree Direction: Orange Wave 3
Details: Orange Wave 1 is completed; now Orange Wave 2 is in play.
Wave Cancel Invalid Level: 162.039

The USD/JPY Elliott Wave Analysis for the 4-hour chart focuses on identifying the current trends and wave patterns within the market. This technical analysis examines the market movement in a counter trend function, indicating a corrective phase rather than a continuation of the previous trend.

The primary wave structure under consideration is Orange Wave 2, following the completion of Orange Wave 1. This means the market is currently experiencing a correction within the larger wave pattern. The analysis identifies Navy Blue Wave 1 as the position within this wave structure, implying that the market is in the early stages of a new wave cycle.

The next expected direction in the wave structure is Orange Wave 3, which follows the current corrective phase of Orange Wave 2. This suggests that once the corrective Wave 2 completes, the market will likely transition into Orange Wave 3, marking a new phase in the wave cycle.

A crucial detail in this analysis is the wave cancel invalid level set at 162.039. This level is significant because it serves as a reference point for validating or invalidating the current wave count. If the market price moves above this level, the current wave analysis would be invalid, necessitating a reassessment of the market's condition. This invalidation level is essential for traders as it helps in managing risks and ensuring the accuracy of the wave count.

Summary:

• The USD/JPY 4-hour chart analysis identifies the market as being in a counter trend corrective phase, specifically in Orange Wave 2 following the completion of Orange Wave 1.
• The analysis positions this within Navy Blue Wave 1 and anticipates the next move to be Orange Wave 3.
• The wave cancellation invalid level at 162.039 is a critical threshold for maintaining the validity of the current wave analysis and for effective risk management.

 

Technical Analyst : Malik Awais

Source : Tradinglounge.com get trial here!

Edited July 17 by tradinglounge