4 hour
The USD/JPY broke back above the resistance trend line (dotted red) and could be retracing within a wave 2 (orange). The structure is valid unless price manages to break above the 100% level, which would invalidate the wave 2 and potential reversal for a new downtrend. There is also a potential for a head and shoulders reversal chart pattern (purple boxes) if price were to reverse around the 50-61.8% Fibonacci resistance level. A break below the neck support line (green) would then confirm the development of the chart pattern.
1 hour
The USD/JPY indeed bounced at the previous bottom to complete a wave b (purple) correction as mentioned in yesterday’s analysis. The bullish bounce seems to be unfolding in 5 waves (grey) within a wave c (purple).
Origin: Admiral Markets
