Since publishing last USDJPY chart suggesting bearish pull back or correction the price action has been relatively choppy and sideways congestion with associated difficulties in labelling correct counts on each swings.
However it appears that with initial zigzag decline in to Dec low, the price action has formed what appears to be bearish triangle which could be complete offering potential short opportunity in wave C decline which should be comparatively strong not overlapping 5 wave decline to conservative 114 downside target.
Summary:
1. Bearish triangle.
2. RSI divergence with price between point C and E.
3. Important 120 level appears to be strong resistance which it failed to take out so far.
4. It has been out of sync with SP500 for sometime which could now could now snap back with both declining together (see chart below)
5. Invalidation pint would be 120.45
6. Potential downside target 114 (conservative)
As always, do your own analysis for your trade requirement. Select to follow me and the chart for notification of future updates. If you like the analysis then please indicate this by thumbs up, comments and sharing with others. If you have an alternative idea then please share for all to learn from.
Thank you for taking the time to read my analysis.
DanV
danv-charting.com
However it appears that with initial zigzag decline in to Dec low, the price action has formed what appears to be bearish triangle which could be complete offering potential short opportunity in wave C decline which should be comparatively strong not overlapping 5 wave decline to conservative 114 downside target.
Summary:
1. Bearish triangle.
2. RSI divergence with price between point C and E.
3. Important 120 level appears to be strong resistance which it failed to take out so far.
4. It has been out of sync with SP500 for sometime which could now could now snap back with both declining together (see chart below)
5. Invalidation pint would be 120.45
6. Potential downside target 114 (conservative)
As always, do your own analysis for your trade requirement. Select to follow me and the chart for notification of future updates. If you like the analysis then please indicate this by thumbs up, comments and sharing with others. If you have an alternative idea then please share for all to learn from.
Thank you for taking the time to read my analysis.
DanV
danv-charting.com
