USD/JPY Harmonic Analysis

Steffy Bogdanova
April 14, 2023 8:42 am

This article was submitted by Aaron Hill from FP Markets.

One of the simpler harmonic patterns is the AB=CD equivalent configuration, which graced the H1 chart of USD/JPY in recent trading.

Active AB=CD Pattern

Denoted through a 100% projection at ¥132.09, we can see that short-term price action rebounded from the AB=CD termination point in recent trading in a market echoing an uptrend. Regarding upside targets, many Harmonic traders will be watching the 38.2% and 61.8% Fibonacci retracement ratios, derived from legs A-D at ¥132.79 and ¥133.27, respectively.

Market Analysis

Technical Confluence

Accompanying the AB=CD pattern is price shaking hands with the lower Bollinger Band (set to three standard deviations) and the Relative Strength Index (RSI) exiting oversold territory. Therefore, the supporting technical confluence—momentum and volatility indicators—suggests a short-term push to the upside may unfold, targeting the aforementioned Fibonacci retracement ratios.

USD/JPY Harmonic Analysis, FP MarketsCharts: TradingView

Meanwhile, after consumer prices in the US cooled to 5.0% in the twelve months to March, the US dollar fell sharply, according to the US Dollar Index.

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Opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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