FX.co ★ Ambar Hassan | USD/JPY

Looking at the daily chart for USD/JPY, I can see that the current quote is sitting at 155.18, and I am analyzing this setup through the lens of wave technique. I observe that the MA100 is trending upward at a modest angle of approximately 10 degrees, and I interpret this gradual slope as a steady foundation for the broader trend. I note that the intraday sentiment is quite buy, and I am encouraged by the fact that all of our candles are currently forming above this key moving average. I take this positioning as a strong confirmation that buy sentiment remains dominant for this instrument in the immediate term I also focus on the MA18, which I see is trading above the key moving average, and I recognize this alignment as a clear indicator of bullish sentiment for the currency pair as a whole. I recall that the other day, the price briefly broke beyond the key moving average, and I initially thought this might trigger a sell signal. However, I observe that this sell-off did not last long; I see that the price immediately reversed and moved upward at a steeper trend angle of 20 degrees. From this price action, I conclude that the sentiment remains quite buy after the correction, and I believe the bulls have successfully regained control

When I turn my attention to the Ichimoku Cloud, I see that it is currently colored sell, and I understand this to be a bearish signal on the surface. I am working through the wave structure, and I identify that we are currently navigating the very first bearish wave. I then note that the second sell-off sub-wave is now underway, which suggests continued downside pressure in this phase. Yet, I also observe an interesting development as I look at the histogram on my screenshot; I see that the histogram is narrowing, and I detect attempts to turn bullish. To me, this narrowing indicates a potential loss of momentum in the bearish waves, and I interpret the attempt to turn bullish as a sign that buying interest may be building beneath the surface I also examine the basement indicator clusters, and I see that they are currently supporting the bulls. I take this as a positive sign that despite the bearish cloud and the ongoing sell-off sub-waves, there is underlying strength that could propel prices higher. I synthesize all these observations, and I conclude that the wave technique is revealing a complex interplay between bearish waves and underlying bullish support. I am patiently waiting for a test of the first estimated resistance level, which I have identified at 155.67. I believe that if the price can reach this level, it will provide further confirmation of the buy sentiment and potentially mark a turning point in the wave structure. Overall, I am maintaining a cautiously optimistic outlook, as I balance the immediate bearish waves against the longer-term bullish indicators and the supportive clusters beneath.