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USD/JPY Bullish Breakout Above 110 Confirms Wave C Impulse

Chris Svorcik

Dear traders,

the USD/JPY made a bullish breakout above the resistance trend line (dotted red), which is confirming the development of a wave C (pink) towards the Fibonacci targets.

4 hour chart

The USD/JPY is building a retracement after the breakout. A continuation above the minor resistance trend line (red) could confirm (green check) the wave 3 (purple) pattern and indicate a push higher towards the Fibonacci targets. A rebreak below the broken resistance (dotted red) invalidates (red x) the wave outlook.

1 hour chart

The USD/JPY bullish bounce at the Fibonacci retracement levels of wave 4 vs 3 and breakout above the resistance trend line (red) could confirm (green check) the wave 4 (green) retracement and wave 3 (purple) momentum. A break, however, below the 61.8% Fibonacci retracement level invalidates (red x) this wave outlook.

Good trading,
Chris Svorcik

The analysis has been done with SWAT method (simple wave analysis and trading)

This article was originally posted on FX Empire

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