USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
It is unclear whether the 5th wave of the downtrend will continue falling to the end of the 3rd wave or if the price will start reversing upward from here.
There is some indecision among market participants, and volatility may squeeze into a triangular consolidation pattern on lower timeframes.
There is a slightly stronger impression of bullish expectations.
Daily
An uptrend is in place, and a triple bottom pattern has formed around the starting level of the recent highest high.
Price is trading near the lower half of the 148.5 to 142.3 range.
The price may be poised for a significant upward move from here.
4-Hour
The price broke above the recent high line, which had been repeatedly acting as resistance.
After a pullback to the starting point of the newly updated recent high, the price resumed its upward movement.
1-Hour
Since neither the recent highest high nor its starting point has been broken by a candlestick body,
the bullish outlook remains intact within roughly the same price range as the 4-hour chart.
Trade Strategies
Strategy①
The upward momentum is strong, so I’m looking to go long and ride the trend.
It seems possible to aim for the area around the recent high on the 1-hour chart,
but entering now would result in a poor risk-to-reward ratio.
If entering, it’s better to look for a pullback on the lower timeframes.
Strategy②
If the recent high is broken on the 4-hour timeframe,
drop down to a lower timeframe and look for a long entry toward the next potential resistance level.
Strategy③
If the price pulls back again to around the starting point of the recent high on the 4-hour chart,
I’ll consider a long entry around that price zone.
