usdjpy buy setup (wave analysis)
Updated
I have some arguments to iditify trend revesal in usdjpy.
wave C(yellow) formed a complete 5 wave structure.
rsi shows a divergence between 3rd and 5th waves. [I respect Anil Mangal, but rsi is more useful for me, than macd]
so, expected ABC correction might be finished.
recent move up has no divergence between its tops.
yes, it broke trendline, but it means nothing.
in case of divergence absence abc (blue) should corrected only the most recent move up, which started on 30 march around 10:30 by Kyiv time.
c = 1.618 a
there is a possibility of more comlex (a)(b)(c) correction.
It might look that recent move up is not a new impulse; price does not move very sharp; and it's forming a correction pattern for next big move down..etc.
yes, it's possible. [115.5-110.1] decline is just wave (1) inside bigger wave C.
but by now I don't see any signs that recent move up formed a sellable corrective structure.
I expressed my view.
Trade with care, according to your strategy.
Good luck!
wave C(yellow) formed a complete 5 wave structure.
rsi shows a divergence between 3rd and 5th waves. [I respect Anil Mangal, but rsi is more useful for me, than macd]
so, expected ABC correction might be finished.
recent move up has no divergence between its tops.
yes, it broke trendline, but it means nothing.
in case of divergence absence abc (blue) should corrected only the most recent move up, which started on 30 march around 10:30 by Kyiv time.
c = 1.618 a
there is a possibility of more comlex (a)(b)(c) correction.
It might look that recent move up is not a new impulse; price does not move very sharp; and it's forming a correction pattern for next big move down..etc.
yes, it's possible. [115.5-110.1] decline is just wave (1) inside bigger wave C.
but by now I don't see any signs that recent move up formed a sellable corrective structure.
I expressed my view.
Trade with care, according to your strategy.
Good luck!
Note
sell targetsNote
looks like 3rd wave of (3)rddrop it like a hot.
Note
watch breakout
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