USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend.
The price once rose to the last swing high line but failed to break above it and rebounded.
The outlook remains bearish until the last swing high line is clearly broken to the upside.
Daily
Uptrend.
The outlook remains bullish until the last swing low is clearly broken to the downside.
After falling to around the last swing low line, the market has entered a range.
4-Hour
A downward Wave 1 has formed, breaking the uptrend and shifting the outlook to bearish.
The outlook remains bearish until the starting point of the recent lowest low is clearly broken to the upside.
If the current move is a downward Wave 2, the question is whether a downward Wave 3 will develop next.
1-Hour
A sharp drop occurred, breaking the uptrend and shifting the outlook to bearish.
As with the 4-hour chart, the outlook remains bearish until the starting point of the recent lowest low is clearly broken to the upside.
An uptrend had been forming on the lower time frames, but as soon as the Tokyo session opened, there was a drop of more than 40 pips.
Trade Strategies
I am considering a pullback sell targeting the downward Wave 3 on the 4-hour chart.
The image shows the 15-minute chart, where a downward Wave 1 is currently forming, so I will look for a pullback sell, expecting a resistance–support flip at the trend reversal line.
I will continue to look for pullback sell opportunities until the starting line of the downward Wave 1 on the 15-minute chart is broken to the upside.
