USD/JPY Prepares for Bullish Breakout above 110

USD/JPY

4 hour

The USD/JPY bullish breakout above the resistance trend line (dotted red) indicates that price is most likely continuing within the wave D (purple). The correction will probably unfold via a WXY (purple) correction within wave Y (pink).

1 hour

The USD/JPY bounced at the support trend line which was probably a wave 4 (green) correction. The current bullish momentum could be a wave 5 (green) of wave C (blue) and it could be aiming for the Fibonacci targets of wave C (blue). This could complete the first leg (wave W) of the larger wave Y correction (pink 4 hour chart).

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.