USDJPY - Major Trend Reversal (UPDATED)

FX:USDJPY   U.S. Dollar / Japanese Yen
992 18 12
When I last posted this chart, it never broke down out of the congestion zone it was in at the time and mounted another swing high. However, it is worth monitoring closely as it is now against many structural resistance and despite seeming strong swing is showing weaker momentum compared with previous major leg. With DXY             showing similar corresponding resistance and Momentum divergence.

Hence, potential reversal could have higher odds. Obviously the potential short could be considered on retracement as initial leg down appears near complete.

Be sure to do your analysis.
Nikkei is in the same spot.
Yes indeed, and they are highly correlated.
The movement from 2011 low looks very impulsive.
What is the reason for you labeling it as corrective?
Is it the longer term price action?

Looking at the RSI, we got double RSI divergence, which is very common when the market has completed 5 waves up.

I agree that we should see weakness in the short term for 2 reasons:
Dollar rally looks mature
Yen strength looks likely.

But the weakness in USDJPY should prove corrective.
I see no reason why one would look at this rally as corrective at the moment.

Good luck!
DanV traderWgun
Because, as you know if we have major ending diagonal in down trend, then this would be wave 4 which now looks complete. Hence a zigzag could fit, still it allows for that strong rally which could be wave a or c, but those are difficult to fit in the patter so far.
For those who might wish to consider additional correlation analysis consider Nikkei 225 Index and S&P 500 Index
With the recent Fundamentals USD (Bullish rally from long term bear move) and BOJ policies to create inflation and devaluing the current, it is very hard for me to trust this clean technical chart. Here is a link which gives you the historical data from 1953. http://fxtop.com/en/historical-exchange-rates-graph-zoom.php?C1=USD&C2=JPY&A=1&DD1=01&MM1=01&YYYY1=1953&DD2=12&MM2=10&YYYY2=2014&LARGE=1&LANG=en&CJ=0&MM1Y=1
Your assumed direction was correct. Kindly, Hamed
DanV HamedAghajani
Thank you for your link to longer term chart. In fact that convinces me even more of potential long term falling wedge which commences from 1999 high and new down trend to resume with potential new lower low below 2011 low to complete this. The argument of USD being bullish and BOJ printing more YEN is probably over cooked and one that could catch many traders on wrong side of the trend. We shall see.
+1 Reply
Apologies, that was suppose to be 1991 top.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out