USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
The fifth wave of the Elliott Wave downtrend may have ended, signaling a possible reversal, or the fourth wave correction may still be ongoing, with the fifth wave yet to begin.
The weekly chart makes it difficult to grasp the overall direction.
Daily
From a bullish perspective, a range has formed between ¥142.3 and ¥148.5.
Although the price once climbed near the top of the range, it was sharply pushed back by a candlestick wick.
Selling pressure appears to be stronger at the moment.
However, since the price has dropped to the lower end of the range, there is a possibility that buying pressure will start to increase.
4-Hour
In a downtrend, the third wave appears to have fully extended, and we are currently in the fourth corrective wave.
The focus is on whether a fifth downward wave will occur or if the price will reverse and start rising instead.
1-Hour
Downtrend.
Watching to see if the outlook shifts upward on the 1-hour chart, or if the price consolidates at the top of the range and forms a double top or similar pattern.
Trade Strategies
Looking to target the fifth downward wave on the 4-hour chart.
Focusing on price action and chart patterns around the top of the 1-hour range or near the last swing high on the 4-hour chart.
If the outlook shifts upward on the 4-hour chart, the short strategy will be scrapped.
Either look to capture the second corrective wave on the lower timeframes or wait for the correction to finish and target the third upward wave.
