USD/JPY Testing Key 50% Fibonacci Support At 112.83

USD/JPY

4 hour

USDJPY Hourly Chart - Wave Analysis

Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – Accessed 9 October 2018 at 5:30 AM GMT

The USD/JPY currency pair broke below the support trend line (dotted green) for a bearish breakout, but the price is now approaching the Fibonacci retracement levels of wave 4 vs 3. The 50% Fibonacci retracement level at 112.83 could be a key bounce or a break spot for the wave 4 (blue). A bearish break below it could indicate that a different wave pattern is more likely, whereas a bullish bounce and a breakout could confirm the development of a wave 5 (blue).

1 hour

USDJPY Hourly Chart - Wave Analysis

Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – accessed 9 October 2018 at 5:30 AM GMT

The USD/JPY currency pair needs to break above the resistance trend lines (orange and red), with strong bullish candlestick patterns before the end of the wave (blue), and the start of the wave 5 (blue) becomes more likely.

Daily

Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – Accessed 9 October 2018 at 5:30 AM GMT

The USD/JPY currency pair has shown strong bullish momentum, which is likely to be part of wave Y (pink) of a larger wave D (purple) triangle pattern.

Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

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