UK Markets closed

USD/JPY Builds ABC Flat Correction Before 110 Resistance

Chris Svorcik

Dear traders, the USD/JPY is building a bearish pullback at the previous top (red), which is a key decision zone for a bullish break or bearish reversal.

4 hour chart

The USD/JPY was unable to break the top and resistance (red) with its first breakout attempt. Price is now retracing back to the Fibonacci levels of wave 4 vs 3. A bearish break below the 50% invalidates (red x) the wave 4 (blue). A bullish break confirms (green check) the move up towards the Fibonacci targets.

1 hour chart

The USD/JPY is building an ABC flat correction (green) within wave 4 (blue). The current wave C (green) is expected to finish at the Fibo levels of wave 4 (blue). A break below the 50% (red x) indicates a different wave count.

Good trading,

Chris Svorcik

The analysis has been done with the help of SWAT method (simple wave analysis and trading)

For more daily technical and wave analysis and updates, sign-up up to our newsletter

 

This article was originally posted on FX Empire

More From FXEMPIRE: