USDJPY, analysis of week 49, pending long for week 50.
Medium trend analysis for USDJPY for week 49. The analysis points toward a possible upward opportunity for week 50. A 3 level of downtrend has been noted and it would be expected to do a reversal in the medium term (1h time frame). However, the second leg of the reversal W has not been formed, therefore, I cannot be sure that it will definitely be rising.
The upward expectation of USDJPY is based on 3 levels of downward movement, which can extend to 4 or 5 levels or more during period of a persistent move. The absence of a complete W must be taken seriously, so at most, only 50% chance that it will rise. The second dip (2nd leg) of the W can extend up to 50 pips lower than first dip (1st leg), so entering a long at this point might not be good for risk management, unless a candlestick pattern presents itself.
That being said, we should stay open minded and look for candle stick pattern and price action when the market opens to decide whether a long or short trade is suitable for day trading.
If my analysis helped you in anyways, please like and share this idea, and also follow my page, as it will encourage me to continue sharing more analysis in the future. Thank you!
The upward expectation of USDJPY is based on 3 levels of downward movement, which can extend to 4 or 5 levels or more during period of a persistent move. The absence of a complete W must be taken seriously, so at most, only 50% chance that it will rise. The second dip (2nd leg) of the W can extend up to 50 pips lower than first dip (1st leg), so entering a long at this point might not be good for risk management, unless a candlestick pattern presents itself.
That being said, we should stay open minded and look for candle stick pattern and price action when the market opens to decide whether a long or short trade is suitable for day trading.
If my analysis helped you in anyways, please like and share this idea, and also follow my page, as it will encourage me to continue sharing more analysis in the future. Thank you!
