USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
It is uncertain whether the 5th wave of the downtrend will continue down to the end of the 3rd wave, or if the price will reverse and start moving upward from here.
There is indecision among market participants, and volatility may squeeze into a triangular consolidation pattern on lower timeframes.
Daily
The downtrend’s last swing low has been slightly broken, and with higher highs and higher lows, an uptrend is in place.
Price is trading near the lower half of the 148.5 to 142.3 range.
The slanted neckline of the double bottom pattern does not seem very reliable.
Overall, there is a stronger impression of bullish expectations.
4-Hour
Price is currently ranging between 142.5 and 145.1, with an overall bullish bias.
The price has risen to the recent high near the upper range boundary.
Here, sellers aiming to short on the pullback and traders closing their long positions may clash with buyers expecting a breakout to the upside.
1-Hour
Uptrend.
Yesterday, bearish momentum was strong, briefly shifting the bias downward, but this turned out to be a fakeout as a sharp rally followed.
Trade Strategies
Strategy①
Wait for the price to pull back near the origin of the recent high on the 1-hour chart and enter long.
Strategy②
If the 1-hour chart bias shifts downward, consider shorting the previous upward move.
However, since the bullish bias appears quite strong, be cautious as this could also be a fakeout.
