USD/JPY Prepares for 5 Bearish Waves Aiming at 107.80

USD/JPY

4 hour

The USD/JPY could be building a bearish ABC (pink) correction pattern as long as price stays below the 138.2% Fibonacci level of wave B vs A. A break below the support trend line (blue) confirms a larger wave C (pink) and is likely to aim at the previous bottom (orange arrow), which could be a bouncing a spot (green arrows).

1 hour

The USD/JPY seems to have completed a bullish ABC (purple) zigzag pattern at the previous high. The current bearish price action could indicate a 5 wave pattern in an ABC flat correction (pink) if price manages to break (green check) support and stay below resistance (red x). The main target is the 100% Fibonacci level of wave C vs A.

For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.

Good trading,
Chris Svorcik
Elite CurrenSea

This article was originally posted on FX Empire

More From FXEMPIRE:

• EUR/USD Daily Forecast – Euro Continues to Grind Sideways

• Natural Gas Price Fundamental Daily Forecast – Weakening Cold Spell Ahead of EIA Report Weighing on Prices

• GBP/USD Daily Forecast – Sterling Extends Lower But Bounces from Support Ahead of BoE

• US Stock Market Overview – Stocks Slip as Trade Deal Negotiations Stall; Productivity Declines

• Price of Gold Fundamental Daily Forecast – Pressured by Drop in Safe-Haven Demand Amid Trade Optimism

• Oil Price Fundamental Daily Forecast – Trade Deal Optimism Offsetting Worries Over Supply