USD/JPY. The retracement is strongly needed.
The USD/JPY has shown impressive gains since March last year. This led to the fact, that on M15-D charts, the pair became very overbought. Long term, we expect the pair will refresh 2015 high of around 126,000 over the next few years.
However, the current picture on the H1-H4 charts, supported by bearish divergences, requires a retracement from the local March highs.
The correction target for the next couple of weeks - 116,400 is clearly visible on the chart and is confirmed by the Fibonacci level.
The configuration of the price movement and indicators on daily chart suggests that the growth of 04-16/03 is the 5th wave of the upward Elliott cycle. If it so, then within the daily chart, we can expect a downward three-waves movement ABC to the lows of 112,500-600 on 30/11-03/12/2021 of the 4th wave (as we see it).
Considering the M15 chart, we do not exclude a refresh of the high 119.120 from 16.03. In this case, the picture for shorts will get stronger.
How to trade.
Open short in USD/JPY with the target of 116,400. If the high of March 16.03 will be refreshed, open additional shorts or strong sell in short.
However, the current picture on the H1-H4 charts, supported by bearish divergences, requires a retracement from the local March highs.
The correction target for the next couple of weeks - 116,400 is clearly visible on the chart and is confirmed by the Fibonacci level.
The configuration of the price movement and indicators on daily chart suggests that the growth of 04-16/03 is the 5th wave of the upward Elliott cycle. If it so, then within the daily chart, we can expect a downward three-waves movement ABC to the lows of 112,500-600 on 30/11-03/12/2021 of the 4th wave (as we see it).
Considering the M15 chart, we do not exclude a refresh of the high 119.120 from 16.03. In this case, the picture for shorts will get stronger.
How to trade.
Open short in USD/JPY with the target of 116,400. If the high of March 16.03 will be refreshed, open additional shorts or strong sell in short.
Trade active:
We added to the short in USD/JPY
Trade active:
There is a bearish candlestick pattern "hanging man" on the USD/JPY daily chart (25/03/2022). Waiting for the JPYs rising against USD.