Trading Lounge U.S. Dollar / Japanese Yen (USDJPY) Day Chart,
U.S. Dollar / Japanese Yen Currency Pair Day Chart Analysis
USDJPY Elliott Wave Technical Analysis
FUNCTION: Bearish Trend
MODE: Impulsive
STRUCTURE: Orange wave 3 (in progress)
POSITION: Navy blue wave 3
DIRECTION NEXT HIGHER DEGREE: Orange wave 4
DETAILS: The orange wave 2 has likely completed, and now orange wave 3 is unfolding. The wave invalidation level stands at 147.262.
The USDJPY Elliott Wave analysis on the day chart signals a bearish trend. The technical mode is impulsive, indicating strong downward momentum. The current structure being tracked is orange wave 3, which has already started, reinforcing the downtrend.
At present, the market is within navy blue wave 3, having progressed through earlier wave phases. Typically, wave 3 in an Elliott Wave pattern is the most forceful and directional. After wave 3 completes, orange wave 4 is expected to follow, which may lead to a period of correction or consolidation.
With orange wave 2 completed, the focus is now on the progress of orange wave 3. The wave invalidation level is set at 147.262. Should the price reach this level, the wave count would be invalid, prompting a re-evaluation of the market structure.
Summary:
USDJPY is currently in a strong downward trend, progressing through navy blue wave 3 in an impulsive wave pattern. The next anticipated phase is a potential corrective orange wave 4, but the primary focus remains on the development of orange wave 3, with the critical level to watch being 147.262.
U.S. Dollar / Japanese Yen (USDJPY) 4-Hour Chart
USDJPY Elliott Wave Technical Analysis
FUNCTION: Bearish Trend
MODE: Impulsive
STRUCTURE: Gray wave 3
POSITION: Orange wave 3
DIRECTION NEXT HIGHER DEGREE: Gray wave 4
DETAILS: The gray wave 2 seems to have completed, and gray wave 3 is now underway. The wave invalidation level is 147.262.
On the 4-hour chart, USDJPY shows a clear bearish trend. The impulsive mode reflects strong downward movement. The structure currently tracked is gray wave 3, reinforcing the ongoing bearish momentum.
Currently, the market is within orange wave 3, which is part of the larger gray wave 3 structure. This wave typically brings sharp price movements, adding to the bearish outlook. With gray wave 2 concluded, gray wave 3 has started, further accelerating the downtrend.
The next higher-degree wave is gray wave 4, which may follow after the completion of gray wave 3. For now, the focus remains on gray wave 3, as this phase continues to drive the market lower. The trend is expected to maintain its bearish momentum until wave 3 concludes, after which a possible corrective gray wave 4 may emerge.
A key invalidation level is set at 147.262. If the price exceeds this level, the current bearish Elliott Wave structure would be invalid, potentially indicating a weakening of the downward trend. However, as long as the price remains below this level, the bearish trend is expected to continue.
Summary:
USDJPY is in a bearish trend, with gray wave 3 in progress. The completion of gray wave 2 has intensified the downward momentum, with gray wave 4 being the next potential phase. As long as the price stays below the invalidation level of 147.262, the bearish trend remains intact.
Technical Analyst: Malik Awais
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