Understanding Dollar index as guide to USDJPY Buy and Sell Zones and comparison to Major Pairs with Respect to Wave 4 Level

This analysis is a guide for trading USDJPY. We see from the history and Elliot wave count the role of BMB as a crtical point for formation of Wave 4 and also a point for market continuity after retest. The direction of this BMB is a guide to the direction of price action. If it is pointing upward, then market is bullish and pointing downward, market is bearish. If flat, market is ranging. It is in this flatening mode we establish the new formation.
There are lot of information on this chart in understanding Elliot wave. Wave 2 and Wave 4 determines our secondary trendline and this often aligns with BMB. The deviation of BMB from this Trendline is a confirmation of near turning point in the market structure.
The 200 SMA is pointing towards the primary Trendline indicating that it will be a future retest when it crossed below the price trendline and price breaks Secondary trendline.
Wave 4 and its horizontal level provision is very important key factor. If in the future price retest this level and breaks it strongly as confirmed with Stochastic, it will turn out to become strong resistance on bearish market as it was previously support as confirmed by BMB direction. To continue reading click the link Understanding Dollar index as guide to USDJPY Buy and Sell Zones


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