USDJPY - Daily C wave (short) is upun us!Hello dear traders.
For upcoming week, i believe that we are gonna see some shorts on USDJPY According to ElliotWave theory.
If you look at the Daily chart, you will understand that we are in at the end of the B of an ABC correction. Potentially we are at the start of a short move, C wave, which gonna last for 1 or 2 weeks. with no more talking I am gonna explain a trade setup that enable us to go short with minimum capital exposure.
1- Pattern:
1.1: Daily pattern (you can check my previous analysis on USDJPY in the idea section of my profile)
ABCDE correction that started since 21 April and lasted until 17 jun, has been ended and confirmed with a powerful bearish candle in Daily timeframe chart.
1.2: 30 min pattern
we can see in 30 Minute Time Frame, that downward waves are shaping according to motive waves structures. This can be a great reversal sign for us to jump on a short trade that may last for 1 or 2 weeks.
After 12345 (motive) we should face a correction phase that not gonna last for too long. A and B of this correction has been shaped already, so all we have to do is that to wait until the C is over.
Note: the correction may be a zigzag, since B of the 30 min TF has only retraced for 0.618 of the A wave.
2- Price:
I have set a price PRZ for 30 min TF, that includes:
downward motive wave Ret: 0.786
Projection of A on point B: 1.00
B extension: 1.414
I have highlighted the area with a red rectangle on the chart.
3- Time analysis:
In Daily time frame, we are at a powerful time PRZ that includes:
Time Retracement: last weekly movtive wave : 2.00
time retracement: 0-a of abcde (B of ABC): 7.00
time retracement: a-b of abcde (B of ABC): 2.00
time retracement: b-c of abcde (B of ABC): 2.618
we are right in the zone right now, so this is a huge point for our POTENTIAL reversal to happen!
4- Invalidation:
If the price goes beyond 110.824, the setup on 30 min time frame will be invalidated and we should not open any short trades afterward based on this analysis.
5- Confirmation:
We must see reversal signs (candle stick patterns, etc.) on our reversal zone for C, and then price must goes lower than B of ABC, then we can confirm our setup and open our short trades.
6- Stop loss: will be 5-10 pips above start of the 1-2-3-4-5 motive (110.824).
7- Take profits:
Will be updated if our setup begins. but profit will be good since we may go short for 7 to 14 days.
I will answer your question my dears, if have any please go on and ask in comment section.
Also thanks for the time you have put to read my setup.
best of luck,
