USD/JPY completes 5 bullish waves at top of bear channel 2016.09.05

EUR/USD

4 hour

The EUR/USD respected the 50% Fibonacci level of wave X (purple). Price could retrace to a higher Fib level such as the 61.8% or 78.6% Fib of wave X vs W before completing wave Y (purple) at wave D (green). The current wave count is expecting price to show a bearish bounce at the Fibonacci levels of wave X (purple) for one more bearish swing towards lower Fib levels of wave D vs B. A break above the trend line (red) would invalidate this scenario.

1 hour

The other scenario is that the EUR/USD wave X (purple) has already been completed and a bearish ABC (blue) zigzag has started. A confirmation of a bearish turn at wave B (blue) could occur via a candle stick pattern or via a bearish breakout below support (green).

GBP/USD

4 hour

The GBP/USD broke above an important resistance (red) trend line from the daily chart. The break indicates a larger ABC correction (pink) within wave 4 (blue).

1 hour

The GBP/USD indeed completed an ABC correction (grey) within wave 4 (purple) after which a wave 5 (purple) completed wave 3 (blue). At the moment a wave 4 (purple) correction is expected at the Fibonacci levels of wave 4 vs 3.

USD/JPY

4 hour

The USD/JPY seems to have completed a series of 5 waves (blue) at a strong resistance trend line (red) of the daily downtrend channel. Wave 1 (purple) could have been completed at the most recent high and an ABC (blue) retracement within wave 2 (purple) seems to be the most likely scenario.

1 hour

The USD/JPY break of support (green) could confirm the retracement within wave 2 (purple). A break above resistance trend lines (red/orange) could extend wave 1 (purple) to a higher high.

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