Long

Possible reversal to upside; USDJPY

By ard3413

Updated

Daily view of USDJPY.
note the divergence.
it seems that correction is about to end.

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1H view :

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1 H view:

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price broke the lower channel to downside. still we have divergence on 4hr; we have to wait until it make a clear pattern.

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This seems to be end of correction which ends with an ending triangle. this is a type of complex correction. so I'm waiting for a correction and long opportunities.

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updated labeling. UJ went one more down wave.
as you know corrective structures are very complex and as it develops we have to analyze and label it again...

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ready to go...
it seems that now we are at last steps of C wave of flat and wave to upside starts soon.

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price is in the triangular phase.
structurally it can breaks to both directions.
Now, I prefer the short setup because of the divergence, but I'm on long (buy) side for long term direction.
Although I prefer short setup, I would enter long if it breaks to upside, maybe because of today's FOMC meeting (fundamental news), but i will move my stop to break even as soon as possible.
[There are 2 series of labels on chart both can be true, we have to wait to see which one is forming]

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the structure developed like a correction and didn't break the upper trend line and reversed; so i anticipate there is still one more wave to downside to complete the structure

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these are probable moves, I have different strategies for every one of them.
now its not obvious which one is going to form, but i prefer those three correction rather than yellow impulsive one because the first wave which is shown in above chart is more likely a correction.

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ard3413

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