USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
We are currently in a situation where the fifth wave of decline may extend further,
but it gives the impression that a reversal to an upward trend is starting to take shape.
There is still ongoing contention between the buying and selling forces,
and there is a possibility that volatility will continue to squeeze.
Daily
The overall outlook remains bullish within the 142.3 to 148.5 yen range, but the price is currently falling, erasing much of the recent upward movement.
While it initially seemed likely to continue rising, there is now a possibility that it may return to the lower end of the range.
4-Hour
I was expecting a buying opportunity at the last swing low that formed before the recent high, but the downward momentum has strengthened.
On the 4-hour chart, the outlook has shifted to bearish, and I am viewing this as the first wave of a downward trend.
1-Hour
After a sharp rise, there was a sharp decline.
The price fell with almost no pullback.
The second wave of the downtrend on the 4-hour chart may be forming on the 1-hour chart.
Trade Strategies
Strategy①
Targeting the second corrective wave on the 4-hour chart.
If the outlook shifts upward on the 1-hour chart, I will look for a long entry aiming for the third wave of the uptrend.
Strategy②
Aiming for a short entry on the third wave of the downtrend on the 4-hour chart.
I will wait for the second wave to complete on the lower timeframe, and enter short after confirming the trend has broken.
