In this technical blog, we will look at the past performance of the 1-hour Elliott Wave Charts of USDJPY. In which, the decline from 16 March 2023 high ended 5 waves in an impulse sequence and showed a lower low sequence in a higher time frame charts. Therefore, we knew that the structure in USDJPY is incomplete to the downside & should see more weakness. So, we advised members to sell the bounces in 3, 7, or 11 swings at the extreme areas. We will explain the structure & forecast :

The 1hr Elliott wave Chart from the 03/27/2023 London update. In which, the decline from 16 March unfolded in an impulse sequence & showed a lower sequence where the pair made a short-term bounce in wave 2. The internals of that bounce unfolded as an Elliott wave zigzag correction where wave ((a)) ended at $130.89 high. Then a decline to $130.35 low ended wave ((b)) pullback and started the ((c)) leg higher towards $131.65- $1132.46 equal legs area from where sellers were expected to appear looking for more downside or for a 3 wave reaction lower at least.

This is the Latest 1hr view from the 03/28/2023 Asia update. In which the pair is showing a reaction lower taking place from the equal legs area allowing shorts to get into a risk-free position shortly after taking the position. However, a break below $129.61 low is still needed to confirm the next extension lower & avoid a double correction higher.

On the contrary side as of writing the pair is retreating 0.38% at 131.01 and the break below 129.63 (monthly low March 24) would open the door to 128.08 (monthly low February 2) and finally 127.21 (2023 low January 16). On the other hand, the immediate hurdle comes at 132.38 (55-day SMA) seconded by 133.00 (weekly high March 22) and then 135.11 (weekly high March 15).

An Elliot wave and technical bearish perspective on USDJPY

Mar 28 2023