USDJPY Elliott Wave Analysis Trading Lounge
U.S. Dollar / Japanese Yen (USDJPY) Day Chart
USDJPY Elliott Wave Technical Analysis
FUNCTION: Bearish Trend
MODE: Impulsive
STRUCTURE: Orange Wave 3
POSITION: Navy Blue Wave 3
DIRECTION NEXT LOWER DEGREES: Orange Wave 3 (started)
DETAILS: Completion of Orange Wave 2 observed; Orange Wave 3 currently active.
Wave Cancel Invalidation Level: 145.950

The USDJPY Elliott Wave Analysis for the daily chart identifies a bearish trend for the U.S. Dollar against the Japanese Yen. The movement is categorized as impulsive, indicating strong downward momentum. The current structure is recognized as orange wave 3, a segment within the broader navy blue wave 3 sequence. This setup suggests an active and strengthening bearish phase, with orange wave 3 now progressing after the completion of orange wave 2.

The upcoming move at the lower degree is anticipated to continue within orange wave 3, supporting the ongoing bearish outlook. The end of orange wave 2 signals the conclusion of the corrective phase, paving the way for further downward movement. A key invalidation level to monitor is 145.950. If the market reaches or exceeds this level, it would invalidate the current bearish wave structure and hint at a reversal or a complex correction.

The analysis highlights the prevailing control of sellers, with the impulsive trend nature suggesting persistent downward pressure. Traders should seek confirmation of the bearish trend continuation, while being alert to any breach above the invalidation level that could revise the market view. The daily chart offers a larger context, indicating that the bearish trend remains intact unless critical resistance levels are surpassed.

In conclusion, USDJPY shows a bearish bias on the daily chart, driven by orange wave 3 within navy blue wave 3. The invalidation level of 145.950 remains pivotal, as surpassing this level could alter the wave count scenario. This analysis offers a methodical approach to understanding the market's trajectory, emphasizing the significance of crucial price levels in validating the bearish trend.

U.S. Dollar / Japanese Yen (USDJPY) 4 Hour Chart
USDJPY Elliott Wave Technical Analysis
FUNCTION: Bearish Trend
MODE: Impulsive
STRUCTURE: Orange Wave 3
POSITION: Navy Blue Wave 3
DIRECTION NEXT LOWER DEGREES: Orange Wave 3 (started)
DETAILS: Completion of Orange Wave 2 observed; Orange Wave 3 now active.
Wave Cancel Invalidation Level: 145.950

The USDJPY Elliott Wave Analysis for the 4-hour chart shows a bearish trend for the U.S. Dollar against the Japanese Yen. The market structure is described as part of an impulsive downward move, specifically within orange wave 3, nested within a broader navy blue wave 3. This setup signals a continued bearish trend, with the next lower degree move expected to be the progression of orange wave 3, which is already underway.

The previous phase, orange wave 2, is regarded as complete, and the market is transitioning into orange wave 3, indicating increased downside potential. A critical invalidation level to watch is 145.950. Should the price meet or exceed this point, it would invalidate the current bearish wave count, suggesting a possible shift in the market structure.

The analysis maintains a bearish function, with the impulsive mode reflecting strong downward momentum. Being positioned within navy blue wave 3, and with orange wave 3 just starting, indicates that sellers dominate the market and further declines are anticipated. Traders are encouraged to seek confirmation of the bearish continuation and closely monitor the invalidation level to effectively manage trading risks.

In conclusion, the USDJPY remains in a bearish phase, with the current wave count pointing towards further downside movement as part of orange wave 3 within the larger navy blue wave 3 structure. The pivotal level to monitor is 145.950, as breaching this level could negate the current bearish outlook. This analysis provides a clear understanding of the market structure and potential future movements.

Technical Analyst: Malik Awais

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