USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
Currently in the 5th wave of the Elliott Wave count, but it’s uncertain whether the price will drop further to the end of wave 3 or start transitioning into an uptrend soon.
Daily
Uptrend.
The price has rebounded from the most recent swing low and is forming a potential double bottom pattern.
It appears to have just slightly broken above the slanted neckline—though the neckline was drawn subjectively, so it’s not definitive.
Still, there’s a strong sense of bullish anticipation in the market.
4-hour
Uptrend.
The price is consolidating after failing to break the recent high.
A double bottom has formed on the 4-hour chart, aligning with the right side of the larger double bottom pattern.
The horizontal neckline has already been broken.
If the recent high is broken and confirmed on the 4-hour chart, bullish momentum could accelerate significantly.
Hourly
Uptrend.
The price briefly pierced the recent high with a wick but was sharply rejected.
It has attempted to break higher several more times, but the fact that it hasn’t closed above that level with the candle body shows that selling pressure remains strong on the 1-hour timeframe.
Trade Strategies
Strategy①
Assume the current price action is forming an ascending triangle, and aim to enter long positions as close to the lower boundary as possible, anticipating an upward breakout.
However, since the market is showing indecision and volatility is squeezing, entry timing is challenging.
Strategy②
If the price drops again, watch for support at key horizontal levels and look for bullish price action signals to enter long positions.
Strategy③
If the recent high is broken and confirmed on the 4-hour chart, wait for a pullback on the lower timeframe before entering a long position.
