USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
Currently, the market is in a consolidation phase, possibly before the emergence of the fifth wave of the downtrend.
Daily
Bullish outlook.
A range has formed between 142.3 yen and 148.5 yen.
The price has rebounded near the lower end of the range and is now rising again, aiming for the upper boundary of the range.
4-Hour
It was a market with high expectations for pullback buying, but the last swing low of the uptrend has been slightly broken.
While the 21-day moving average may attract buying interest, the overall bullish sentiment could weaken somewhat.
The key question now is whether this move marks the beginning of the first wave of a new downtrend.
1-Hour
The trend has shifted from an uptrend to a downtrend.
Trade Strategies
If the first wave of a downtrend is clearly confirmed on the 4-hour chart, wait for the second wave’s pullback and consider a short entry targeting the third wave.
Pay close attention to the strength of the buying pressure from those looking to buy the dip.
Until a clear break below is confirmed, there’s still a risk of a false breakout, so proceed with caution.
Consider a short entry on the lower timeframes either near the upper boundary of the 1-hour range or after a confirmed break below the lower boundary.
The last swing high on the 1-hour chart is unclear, but if the price breaks above the upper horizontal line, there’s a possibility that bullish momentum will temporarily strengthen.
