USDJPY Analysis 09/05/2023

US DOLLAR / JAPANESE YEN H4 Time Frame

Major Trend = Downtrend
Minor Trend = Ranging

Nearest Support Area = 127.195-128.125
Nearest Resistance Area = 136.390-137.450

Overall Bias = Short
Short Term Target = 130.327-130.710
Ideal Target = 127.195-128.125
Invalidation Level = 137.825

Notes :
USDJPY has been weak since late 2022 with price lately being more range bound around 130-138. Using Elliott Wave Analysis we can see that price is currently in the early stages of its C intermediate corrective wave after price made its B wave top last week.

Our 1st Main And "Ideal" Scenario is the black paths where price will continue its 5 wave correction with an ideal target around 127.195-128.125. This scenario will still be valid as long as price stays below 137.825.

Our 2nd "Worst Case" Scenario is the red paths where price will still continue its upwards rally to around 143.800-145.000 to fully complete its B wave rebound before starting its C wave correction wave.