USD/JPY Bounces at 88.6% Fibonacci and Tests Trend Line

Rujan 24, 2018 08:21

USDJPY

4 hour

Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – 24 September 2018 at 4:00 AM GMT

The USDJPY bounced at the support trend line (green) of the bullish channel after a bearish bounce at the 88.6% Fibonacci resistance retracement level. The price however will need to break below the support trend line (green) before a reversal becomes more likely. A failure to break below the support could indicate an uptrend continuation, and an invalidation of the wave X (pink).

1 hour

Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – 24 September 2018 at 4:00 AM GMT

The USDJPY is probably in a wave 1-2 (blue) as long as the price stays below the 100% Fibonacci level. A bullish breakout above that level makes a wave X (pink) on the 4 hour chart less likely. A break below the support line (green) could make a wave 3 more likely.

Weekly

Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – 24 September 2018 at 4:00 AM GMT

The USDJPY is retesting a key resistance trend line (red). A bearish bounce could indicate a bearish continuation within wave E (light purple) whereas a bullish breakout could invalidate the wave E and expand the wave D (light purple).

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