USD/JPY Bullish But Channel Top Should Create Bull Flag Soon

USD/JPY has reached the top of the bullish trend channel again. The JPY weakness trend, however, is strong.


USD/JPY is showing multiple higher highs and higher lows. The bullish price swings are impulsive whereas the bearish ones are mostly corrective. What does this mean?


On the 1 hour chart, price action is looking for an immediate bullish breakout (green arrow). The target is aiming at the 107.50-107.75 zone.


Price action could break above the channel this time around. Let’s review.



Price charts and technical analysis


The USD/JPY is showing multiple higher highs and higher lows. The bullish price swings are impulsive whereas the bearish ones are mostly corrective. What does this mean?

  1. It confirms a bullish 5 wave pattern (purple) in a larger wave C.

  2. Wave 5 (pink) is now testing the channel resistance and Wizz 7 target.

  3. This zone could create a bearish correction such as a bear flag (orange arrows).

  4. An immediate push higher could reach the round level at 107.50-107.75.

  5. An uptrend continuation is expected (green arrow) towards Wizz 8 at 108.70 after the bull flag.

  6. The uptrend remains valid as long as price action remains within the bullish channel.


On the 1 hour chart, price action is looking for an immediate bullish breakout (green arrow). The immediate target is aiming at the 107.50-107.75 zone.


  1. Eventually, a bull flag pattern (grey arrows) is expected.

  2. This could complete wave 4 (grey).

  3. The bullish breakout (blue arrow) should continue higher after wave 4 is completed.

  4. The long-term 144-233 ema moving averages should act as support if price action retraces that deep.


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