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.
Trade Strategies
I am considering a short entry, preferably after pulling up as close as possible to the upper limit of the current range.
If the range bottom is broken to the downside with a candle body close on the 1-hour chart, I will look for pullback sell opportunities on the lower time frames.
