Let’s discuss the price chart of the USDJPY currency pair based on the 480 minute timeframe.
From the Elliott Wave perspective, the price action appears to have completed Wave (5). The parallel channel also confirms this analysis. Additionally, most momentum oscillators are forming a bearish divergence pattern, which is typical at the end of fifth waves. Essentially the upside momentum is waning, and a downward correction is imminent.
From the Hurst Cycles perspective, the composite model line which measures the combined cyclical pressure, topped on April 1 (1st vertical line), and is projected to form a bottom on May 6 (2nd vertical line).
Based on this, we can expect prices to move lower from here. The actual sell confirmation would occur upon the breakout and close below the lower parallel channel. A Fibonacci retracement of 50% of the entire bullish impulse would be a likely support area.
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From the Elliott Wave perspective, the price action appears to have completed Wave (5). The parallel channel also confirms this analysis. Additionally, most momentum oscillators are forming a bearish divergence pattern, which is typical at the end of fifth waves. Essentially the upside momentum is waning, and a downward correction is imminent.
From the Hurst Cycles perspective, the composite model line which measures the combined cyclical pressure, topped on April 1 (1st vertical line), and is projected to form a bottom on May 6 (2nd vertical line).
Based on this, we can expect prices to move lower from here. The actual sell confirmation would occur upon the breakout and close below the lower parallel channel. A Fibonacci retracement of 50% of the entire bullish impulse would be a likely support area.
If you find this analysis useful, make sure to press the “Like” button and Follow us.