USDJPY Elliott Wave Analysis - Trading Lounge Day Chart
U.S. Dollar / Japanese Yen (USDJPY) Day Chart
USDJPY Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Navy blue wave 2
Position: Gray wave 1
Direction Next Lower Degrees: Navy blue wave 3
Details: Navy blue wave 1 appears completed, with navy blue wave 2 currently unfolding.
Wave Cancel Invalid Level: 161.963
The daily USDJPY Elliott Wave Analysis highlights a corrective phase in the market, indicating a counter-trend movement. This corrective phase suggests that the current market action is a temporary retracement rather than a continuation of the main trend. The structure under scrutiny is navy blue wave 2, following the completion of navy blue wave 1.
Currently, the market stands in gray wave 1, while navy blue wave 2 continues to develop. The completion of navy blue wave 1 has already occurred, and the market is now pulling back as part of navy blue wave 2. In Elliott Wave Theory, wave 2 typically retraces part of wave 1, signaling a pullback from the previous impulsive wave. This phase is considered temporary, with expectations for the market to resume its primary trend after navy blue wave 2 concludes.
The next anticipated move is navy blue wave 3, which is expected to follow the completion of wave 2. Wave 3 generally represents the most robust and extended wave in the Elliott Wave cycle, indicating a significant move in the direction of the main trend once the correction ends.
The key level to monitor is 161.963, which serves as the wave cancel invalidation point. If the market drops below this level, the current wave analysis will be invalid, necessitating a reevaluation of the structure. This level is crucial for confirming whether the corrective phase remains valid.
Summary:
The USDJPY Elliott Wave Analysis shows that the market is in a corrective phase with navy blue wave 2 unfolding. Traders should watch the invalidation level of 161.963 closely to verify the correction's validity. After the completion of navy blue wave 2, navy blue wave 3 is expected to resume the primary trend with increased momentum.
U.S. Dollar / Japanese Yen (USDJPY) 4 Hour Chart
USDJPY Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Navy blue wave 2
Position: Gray wave 1
Direction Next Lower Degrees: Navy blue wave 3
Details: Navy blue wave 1 seems completed, with navy blue wave 2 currently developing.
Wave Cancel Invalid Level: 161.963
The USDJPY Elliott Wave Analysis for the 4-hour chart points to a counter-trend movement, indicating the market is in a correction phase. This corrective movement represents a temporary retracement against the primary trend. The current structure under review is navy blue wave 2, following the completion of navy blue wave 1.
At this stage, the market is positioned in gray wave 1, while navy blue wave 2 continues to unfold. The market is now experiencing the retracement phase of navy blue wave 2 after the completion of navy blue wave 1. In Elliott Wave Theory, wave 2 typically retraces part of the previous wave 1, signaling a temporary pullback in the market’s movement. Once navy blue wave 2 completes, the primary trend is expected to resume.
The next anticipated movement is navy blue wave 3, which usually follows the conclusion of wave 2. Wave 3 is typically the strongest and most extended wave in the Elliott Wave sequence, suggesting a return to the dominant trend with greater momentum once the correction phase ends.
A key level to watch is 161.963, the wave cancel invalidation point. If the market falls below this level, the current Elliott Wave analysis will be invalidated, and a reassessment will be needed. This level is crucial in determining the validity of the ongoing correction.
Summary:
The USDJPY Elliott Wave Analysis indicates the market is in a corrective phase with navy blue wave 2 still progressing. Traders should keep a close eye on the invalidation level of 161.963 to ensure the correction remains valid. Once navy blue wave 2 finishes, navy blue wave 3 is anticipated to resume the primary trend with stronger momentum.
Technical Analyst: Malik Awais
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