USD/JPY Elliott Wave Analysis

Forex Pair : USD/JPY

Date : 7th May 2020

Time Frame : 4 Hr

Elliott Wave Analysis :

Lest’s start our USDJPY Elliott Wave Analysis on the 4Hr chart.

The chart seems to be showing the possibility of the completion of an internal 5-3-5 ABC corrective structure for the (X) wave of the larger (W) (X) (Y) correction in the higher time frame.

Breaking it down, we can observe the following price action sequence unfolding for the (X) wave in dark blue.

The A wave in light blue could be identified as an impulsive [1][2][3][4][5] wave coming down in 5 waves with an extended 3rd wave.

The corresponding middle B wave retracement in light blue looks like an [a][b][c] corrective structure in the smaller degree.

The last C leg in light blue looks to have completed a [1][2][3][4][5] Ending Diagonal.

There also seems to glimpses of a bullish “Divergence” in the RSI.

Overall, the (X) leg in dark blue seems to have retraced to slightly more than 50% Fibonacci retracement of the prior (W) wave, which is in the high probability zone.

Assuming the (X) leg has completed, the next logical move will likely be upside in the form of the (Y) leg up to complete the entire (W)(X)(Y) corrective structure in dark blue.

Start looking for a 1-2 impulse followed by a correction in the lower time frame for confirmation of the up move.

Please DYODD before taking any trades based on our USDJPY Elliott Wave Analysis.

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