USD/JPY Arrives at Bearish 50% Fibonacci of Wave 4

January 25, 2017 04:00

USD/JPY

4 hour

The USD/JPY is retracing back to the Fibonacci levels of wave 4 (purple) which could act as potential bullish support levels.

1 hour

The USD/JPY is in a bearish triangle (orange/blue) within a downtrend channel (red/green). A breakout above or below the triangle is needed before price could be expected to move impulsively. At the moment a wave 4 (orange) seems likely unless price breaks above the 50% Fib.

EUR/USD

4 hour

The EUR/USD has reached the 78.6% Fibonacci level of wave 2 vs 1 (brown), which could act as a bearish resistance zone. Another major bearish resistance level is at 1.08 which is the 88.6% Fibonacci. A break above the 100% level would invalidate the current wave structure.

1 hour

The EUR/USD could be making a bearish turn at the 78.6% Fibonacci level but it would need to break below the support trend lines (green/blue) to increase the chance of that scenario. Alternatively, price could still be part of a wave 4 (grey) correction if it stays above the Fib levels of wave 4 vs 3.

GBP/USD

4 hour

The GBP/USD seems to be building an ABC zigzag (blue) and price is moving towards the Fibonacci levels of wave C vs A. Within wave C (blue) price seems to be building a 5 wave (orange) structure.

1 hour

The GBP/USD bounced at the Fibonacci levels of the wave 4 retracement and is now heading for a wave 5 (orange) which has resistance nearby (brown trend line).

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