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USDJPY Elliott Wave Analysis Trading Lounge 4 Hour Chart, 9 November 23

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

USDJPY Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Motive(ending diagonal)

Structure: red wave 5 of C

Position: Z OF B

Direction Next Lower Degrees: new Downtrend  

Details: wave 4 of C is looking completed at 149.185, now wave  5 of C is in play and near to end. Wave Cancel invalid level: 149.125

The "USDJPY Elliott Wave Analysis Trading Lounge 4 Hour Chart" for 9 November 23, focuses on the intricacies of the U.S. Dollar/Japanese Yen (USDJPY) currency pair. Utilizing Elliott Wave theory, it offers insights into potential market movements and trading strategies.

The analysis categorizes the market function as a "Counter Trend." This suggests that the USDJPY pair is currently undergoing a reversal or correction against the prevailing trend. Understanding this context is vital for traders aiming to capitalize on short-term price movements.

It identifies the "Mode" as "Motive (ending diagonal)." A Motive mode typically indicates that the market is engaged in a directional move. The reference to an "ending diagonal" implies that this directional movement may be part of a terminal pattern, often occurring in the final stages of a trend.

The analysis specifies the market's "Structure" as "red wave 5 of C." This indicates that the market is currently in the fifth wave of a larger corrective pattern, potentially part of a complex Elliott Wave structure.

The "Position" is noted as "Z OF B," implying that the market is at a significant juncture within a corrective structure. In Elliott Wave theory, "B" waves are often part of complex corrections that precede the final wave.

The "Direction" in the lower degrees is labeled as a "new Downtrend." This is a crucial piece of information for traders, as it suggests that the correction discussed in this analysis might be the precursor to a broader downward trend. Traders may use this information to make informed decisions.

The analysis highlights the ongoing status of "wave 5 of C," indicating that this specific sub-wave within the correction is in play. Understanding which sub-wave is unfolding can be instrumental for traders in evaluating potential price targets and reversal points.

A critical reference point is identified as the "Wave Cancel invalid level," situated at 149.125. This level is of paramount importance in managing risk and trade decisions. A breach of this level could signal a change in the anticipated market structure.

In summary, the USDJPY Elliott Wave Analysis suggests a Counter Trend scenario with a Motive Mode in the form of an ending diagonal structure. The market is currently navigating the fifth wave of the correction (wave 5 of C). Moreover, traders should closely monitor the Wave Cancel invalid level at 149.125 as it represents a pivotal point for managing risk.

Technical Analyst : Malik Awais
Source : Tradinglounge.com

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