USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
Within the range between the recent low and the last swing high, an uptrend has formed on the lower time frames.
The price once rose to the last swing high line but failed to break above it and rebounded.
The outlook remains bearish until the last swing high line is clearly broken to the upside.
Daily
Uptrend.
After falling to around the last swing low line, a range has formed on the lower time frames.
The outlook remains bullish until the last swing low line is clearly broken to the downside.
4-Hour
A downward Wave 1 has formed, breaking the uptrend, and the price is moving between the starting and ending points of Wave 1.
The outlook remains bearish until the starting line of Wave 1 is clearly broken to the upside.
The next potential resistance line to watch is the blue line in the image above.
1-Hour
A sharp drop occurred, and the price is moving within the range between its starting and ending points.
The outlook remains bearish until the starting line of the sharp drop is clearly broken to the upside.
Currently, an uptrend is forming on the lower timeframes.
Trade Strategies
Look for price action or chart patterns near the potential resistance line and sell on the pullback.
If the resistance line is broken to the upside, I will ride the short-term uptrend and look for a long entry toward the area near the starting point of the sharp drop on the 1-hour chart.
I will ride the current short-term uptrend and look for a long entry.
