U.S. Markets closed

USD/JPY Bullish Close and Reverse Kicks Off Wave C

Chris Svorcik

Dear traders,

the USD/JPY made a strong bullish reversal after completing a 5th wave (blue) at the support zone (blue). What is next for this pair?

4 hour chart

The USD/JPY bullish reversal is probably indicating the end of the wave B (pink) and the start of a wave C (pink) within a larger bullish ABC zigzag (pink). Price is therefore expected to break above the resistance zone (red), although it could build a chart pattern (orange sideways arrow) before breaking higher. The break confirms (green check) the bullish outlook.

1 hour chart

The USD/JPY break and bounce could confirm (green checks) the bullish wave pattern. The current push up seems to be a wave 3 (purple) and price action is aiming for the Fibonacci targets. A light pullback would fit within a wave 4 pattern.

For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.

Good trading,
Chris Svorcik
Elite CurrenSea

This article was originally posted on FX Empire

More From FXEMPIRE: