USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Last week, the price climbed up to the area around the final swing high of the previous downtrend, but was strongly pushed back down—partly due to the impact of the U.S. Non-Farm Payrolls release.
Since that swing high level hasn’t been clearly broken to the upside, the weekly outlook remains bearish.
Daily
The market is in an uptrend.
A significant correction is currently underway, with the price falling toward the last swing low of the uptrend.
As long as that swing low isn’t clearly broken, the daily outlook remains bullish.
The 21-period moving average doesn’t appear to be acting as a major support or buy zone at this point.
4-Hour
There was a first downward wave that disrupted the uptrend, and we may now be in the third wave.
I expected the correction to last a bit longer, but the price has already broken below the end of wave 1, forming lower highs and lower lows.
Now watching to see whether it will continue falling toward the daily swing low area.
1-Hour
The market is in a downtrend.
Currently, the waves are getting smaller, and the price action resembles a range.
Trade Strategies
Entered a pullback short at the 4-hour wave 1 endpoint and the 1-hour swing high line.
The 21-period moving average on the 1-hour chart is also aligning with that level.
If the price rises to the 4-hour swing high area, I’ll consider a short entry around that level.
If the price breaks above the 4-hour swing high zone, the short strategy will be scrapped.
If the upward momentum is strong, I’ll also consider a long entry by riding the short-term trend.
