USD/JPY Bearish ABC Zigzag Retests 110 Resistance

USD/JPY

4 hour

The USD/JPY bearish momentum is probably a wave A (blue), which is part of larger ABC zigzag. A bullish break above the resistance trend lines could indicate that the bearish wave A (blue) is completed and that price will retrace as part of a bullish ABC correction within wave B (blue). In that case the Fibonacci levels of wave B could act as a potential resistance spots for a bearish turn.

1 hour

The USD/JPY is building a corrective triangle pattern. A break below the support trend line (green) could indicate an expanded 5th wave within wave A (blue) whereas a break above the resistance trend lines (orange) would increase the chances of a wave C.

Chris Svorcik

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This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.