Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The USD/JPY is seen to be declining after developing a bearish impulse wave, and being rejected at the 84.00 psychological resistance level.
- The RSI however is still bullish as it stays above 40.
- For this decline to develop into a significant correction, something shown in the 4H chart, it needs to break below 83.10. Otherwise, the market would develop a positive reversal since the RSI low is already lower then the previous, but the price low is still above the previous, which was at 83.10.
- If there is a correction, a break below 83.10 could bring us towards 82.55, 50% retracement, rising trendline, 200SMA, and previous minor resistance to be tested as support.
- All these support factors suggests if this can't hold off the decline, the bears are in to bring the pair back down towards the 81.30 area.
- A break back above 84.00 resumes the uptrend in the short-term towards 84.50, and possible a swing projection towards 85.20.
Will the USD/JPY Break above 84.00, or does it need a resolve a correction first? We would love to hear what you think.