USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
The fifth wave of the Elliott Wave downtrend may have ended, signaling a possible reversal, or the fourth wave correction may still be ongoing, with the fifth wave yet to begin.
The weekly chart makes it difficult to grasp the overall direction.
Daily
From a bullish perspective, a range has formed between ¥142.3 and ¥148.5.
Although the price once climbed near the top of the range, it was sharply pushed back by a candlestick wick.
Selling pressure appears to be stronger at the moment.
4-Hour
The last swing low of the uptrend was broken, and lower highs and lower lows are forming, signaling the start of a downtrend.
The candlestick hasn’t closed yet, but since it has broken the recent low, we can tell that selling pressure is strong.
1-Hour
Downtrend.
A range has formed within the price swing of the last move, with significant consolidation seen on the lower timeframes.
Trade Strategies
Yesterday, the moving average acted as resistance and caused a temporary drop, but instead of forming a double top, the chart ended up forming a head and shoulders pattern.
Selling momentum is currently strong, and assuming the third wave of the Elliott Wave hasn’t fully extended yet, this could be a good opportunity to aim for a short position down to the next key support level.
However, since the risk-to-reward ratio would be unfavorable, it’s necessary to drop down to a lower timeframe to look for a better entry point.
If the outlook shifts upward on the 1-hour chart, expectations for a rise will increase, so the strategy should be reset.
