Wave analysis of USD/JPY for March 8, 2021
USD/JPY, Daily chart:
The daily time frame of the USD/JPY pair shows the structure of the horizontal correction wave [B], which is part of the global zigzag. This correction [B] consists of a triangle (A) – (B) – (C) – (D) – (E).
At the moment, the final wave (E) of this triangular pattern is being formed, which takes the form of a double zigzag W-X-Y. Earlier, the descending wave of the bundle (X) in the form of a triple zigzag finished its construction. It was followed by a price growth in the final wave of (Y).
It is assumed that wave (Y) will complete the entire correction wave [B] just above the maximum that wave [x] formed, which is around the level of 110.00.
We will consider the marking of the last part of the chart in the smaller time frame.
USD/JPY, H4 chart:
As for the four-hour time frame, it shows the internal structure of the upward wave Y.
It consists of three sub-waves [W]-[X]-[Y] and takes a double zigzag form. The [W] and [X] sub-waves have been entirely completed, while the [Y] sub-wave is still in progress. We can assume that it will have a simple zigzag shape (A)-(B)-(C), similarly to the first active sub-wave [W].
Therefore, market participants expect the bullish impulse (A) to be completed in the medium-term. After that, the price will slightly decline in a small correction (B). Once this correction is over, the impulse (C) may push the market upwards to the level of 110.00.
The approximate scheme of possible future movement is shown on the chart.
The material has been provided by InstaForex Company – www.instaforex.com