FX.co ★ Wave analysis of USD/JPY on March 18, 2021

USD/JPY, H4:

In today's review, we will consider the situation with the USD/JPY currency pair.

The chart shows the final part of the global triangular wave of the bundle [X], that is, wave (E). Wave (E) is a double zigzag, within which the last sub-wave Y is being constructed.

The sub-wave Y, in turn, also has a complex double zigzag formation [W]-[X]-[Y]. The current wave [W] and the bundle wave [X] seem to be completed, and the last wave [Y] is still being formed. Let's take a closer look at its markup.

USD/JPY, H1:

On the hourly time frame, we see that the ascending operating wave [Y] takes the form of a simple zigzag (A)-(B)-(C).

At the moment, sub-waves (A) and (B) are fully completed, where (A) is a bullish five-wave impulse, and (B) is a bearish correction.

An upward wave (C) is currently forming. It seems that the market has completed the construction of a downward corrective wave 4. Since its end has gone below the end of wave 1, we should assume that the entire wave (C) is the final diagonal.

If this hypothesis is correct, then in the coming trading days, we are expecting the growth of the currency pair within the upward zigzag [a]-[b]-[c], which will complete wave 5 at the level of 110.00.

After reaching the specified mark, the market may reverse and start building a new downward trend.