USDJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Downtrend, currently in 5th wave.
Not sure how far it will fall.
It has now fallen to about 60% of the third wave, so there is a possibility of a reversal.
Daily
The last return high was slightly above.
The high and low also rounded out to an uptrend.
It fell all the way to the last push low and is now rebounding at the second point with that line as support.
4-hour
Downtrend.
The range between the most recent low and its starting point is directionless and will gradually become a triangle.
Hourly
The upward wave is broken and the price is in a downtrend.
There is no trend on the hourly, and an uptrend is developing on the lower leg within that price range.
Trade Strategies
Strategy①
Short trades following the trend on the 4-hour and 1-hour timeframes.
Enter a short position when the price is near the upper boundary of a range or a triangle consolidation pattern and the trend on a lower timeframe starts to break down.
Avoid holding positions around the time of Non-Farm Payroll (NFP) announcements.
Strategy②
If the price clearly breaks above a horizontal resistance level on the 4-hour chart, wait for a pullback and then enter a long position.
