USDJPY Elliott Wave Analysis – TradingLounge

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 1
• Direction Next Higher Degrees: Orange Wave 4
• Details: Orange Wave 2 of Navy Blue Wave 1 appears completed, with Orange Wave 3 now in play.
• Wave Cancellation Invalid Level: 154.854

USDJPY Elliott Wave Analysis Overview

The USDJPY daily chart suggests a bearish trend for the U.S. Dollar against the Japanese Yen, based on Elliott Wave Theory. This approach identifies repetitive wave patterns in price movements. The current market mode is impulsive, indicating strong directional movement.

The identified structure is Orange Wave 3, which forms part of a larger Navy Blue Wave 1. This setup signifies that the bearish trend is in a significant downward phase.

Key Observations

• Completion of Orange Wave 2: The analysis indicates that Orange Wave 2 of Navy Blue Wave 1 has ended.
• Activation of Orange Wave 3: Orange Wave 3, typically the strongest and most extended wave in an Elliott Wave sequence, is now active, reinforcing the bearish outlook.
• Anticipation of Orange Wave 4: Following the completion of Orange Wave 3, the next higher-degree wave, Orange Wave 4, is expected.

Key Level to Monitor

• Wave Cancellation Invalid Level: 154.854
  • If the price moves above 154.854, the current wave count would be invalidated, potentially altering the bearish outlook.
  • This level acts as a critical threshold, confirming the ongoing bearish trend.

Conclusion

The USDJPY daily chart analysis suggests a continuation of the bearish trend, with Orange Wave 3 currently in play. The completion of Orange Wave 2 and the activation of Orange Wave 3 indicate strong downward momentum.

Traders should closely monitor the invalid level at 154.854, as a break above this level could disrupt the current bearish wave structure. Given the current market conditions, traders should remain cautious and integrate this analysis into their decision-making process.

U.S. Dollar / Japanese Yen (USDJPY) – 4-Hour Chart

USDJPY Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Gray Wave 3
• Position: Orange Wave 3
• Direction Next Higher Degrees: Gray Wave 4
• Details: Gray Wave 2 of Orange Wave 3 appears completed, with Gray Wave 3 now in play.
• Wave Cancellation Invalid Level: 154.854

USDJPY Elliott Wave Analysis Overview

The USDJPY 4-hour chart analysis suggests a bearish trend for the U.S. Dollar against the Japanese Yen, based on Elliott Wave Theory. This method identifies repetitive wave patterns in price movements, helping to predict potential future trends. The current market mode is impulsive, signaling strong directional momentum.

The market is currently in Gray Wave 3, which is part of a larger Orange Wave 3. This positioning suggests the bearish trend is in an intensified downward phase.

Key Observations

• Completion of Gray Wave 2: The analysis suggests that Gray Wave 2 of Orange Wave 3 has concluded.
• Activation of Gray Wave 3: Gray Wave 3, typically the strongest and most extended wave in an Elliott Wave sequence, is now active, reinforcing the bearish outlook.
• Anticipation of Gray Wave 4: After the completion of Gray Wave 3, the next higher-degree wave, Gray Wave 4, is expected.

Key Level to Monitor

• Wave Cancellation Invalid Level: 154.854
  • If the price rises above 154.854, the current wave count would be invalidated, which could alter the bearish perspective.
  • This level acts as a critical threshold, confirming whether the ongoing bearish trend remains intact.

Conclusion

The USDJPY 4-hour chart analysis indicates a continuation of the bearish trend, with Gray Wave 3 currently in play. The completion of Gray Wave 2 and the activation of Gray Wave 3 signal strong downward momentum.

Traders should closely monitor the invalidation level at 154.854, as a break above this level could disrupt the current bearish wave structure. Given the market conditions, traders should remain cautious and incorporate this analysis into their trading strategy.

Technical Analyst: Malik Awais

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