USD/JPY Bullish ABC Pattern in Bearish Wave B

Julij 24, 2018 08:59

Eventually a bearish bounce is expected due to the ABC zigzag pattern. Price should stop at the Fibonacci levels of wave B vs A whereas a break above 100% Fib level invalidates the bearish ABC.

USD/JPY

4 hour


Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave

Despite the strong bearish momentum on the USD/JPY, price made a bullish bounce at the support trend line (blue). This could confirm the end of wave A (red) and the start of wave B (red). Eventually a bearish bounce and break is expected due to a potential ABC (red) zigzag pattern. Price should stop at the Fibonacci levels of wave B vs A whereas a break above the 100% Fibonacci level invalidates the bearish ABC.

1 hour


Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave

The USD/JPY seems to be building an ABC pattern (orange) within wave B (red). A bullish breakout could indicate above the resistance trend line (red) could indicate a larger bullish wave C (orange) pattern in wave B (red).

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