Bullish Momentum Unfolds: Elliott Wave Insights
Updated
Hello Traders,
Here is my analysis of USDJPY.
From an Elliott Wave Theory perspective, below is my intraday interpretation of price movement:
The price action that began on August 17th at 146.555 during the Asian session is interpreted as the initiation of a corrective phase within a larger trend. This correction took the form of a zigzag pattern, which is a common structure in Elliott Wave Theory.
The completion of this zigzag correction occurred on August 18th at 144.928, marking the termination of the corrective wave. Following the completion of the correction, the price displayed a sequence of 5 smaller motive waves to the upside. It's worth noting that the fifth wave in this sequence was truncated, meaning it did not exceed the high of the third wave at 146.403.
The collective movement of these smaller motive waves constitutes a larger degree wave 1, representing the initial impulsive movement within the current Elliott Wave cycle.
Subsequently, a smaller degree zigzag correction unfolded within the framework of motive wave 1, and this correction occurred during another Asian session. Anticipated retracement levels for this corrective move are projected around 145.67 and 145.499, respectively. This corrective phase will contribute to the formation of a larger degree wave 2.
My overall projection is bullish. The price targets for the anticipated upward movement are identified as 146.990 for the conservative target and 147.911 for the medium-term target. However, this bullish outlook would become invalid if the price were to breach the level of 144.928.
Cheers and happy Trading.
Here is my analysis of USDJPY.
From an Elliott Wave Theory perspective, below is my intraday interpretation of price movement:
The price action that began on August 17th at 146.555 during the Asian session is interpreted as the initiation of a corrective phase within a larger trend. This correction took the form of a zigzag pattern, which is a common structure in Elliott Wave Theory.
The completion of this zigzag correction occurred on August 18th at 144.928, marking the termination of the corrective wave. Following the completion of the correction, the price displayed a sequence of 5 smaller motive waves to the upside. It's worth noting that the fifth wave in this sequence was truncated, meaning it did not exceed the high of the third wave at 146.403.
The collective movement of these smaller motive waves constitutes a larger degree wave 1, representing the initial impulsive movement within the current Elliott Wave cycle.
Subsequently, a smaller degree zigzag correction unfolded within the framework of motive wave 1, and this correction occurred during another Asian session. Anticipated retracement levels for this corrective move are projected around 145.67 and 145.499, respectively. This corrective phase will contribute to the formation of a larger degree wave 2.
My overall projection is bullish. The price targets for the anticipated upward movement are identified as 146.990 for the conservative target and 147.911 for the medium-term target. However, this bullish outlook would become invalid if the price were to breach the level of 144.928.
Cheers and happy Trading.
Note
It is true that successful traders possess the skill to adapt to changing market conditions. While we anticipated an upward move for a larger degree wave 3 yesterday, that assessment turned out to be incorrect. Instead, the current situation reveals a deep ABC corrective sub-wave, forming a larger degree wave 2. This observation is reinforced by a divergence in the RSI indicator.
To keep our analysis consistent, we continue to regard 144.928 as a critical invalidation level. If this level remains intact, we will need to see a break above 145.758 to confirm the bullish move.
Cheers and Happy trading!
Note
Price failed to break the 145.758 level and went straight to hit the invalidation level, thus making this outlook incorrect. We can therefore look for any opportunity to go short on an intraday basis, while bearing in mind that the global trend is still bullish.
Trade closed: stop reached
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