USDJPY Ending Diagonal: Multi-Timeframe Elliott Wave Setup
USD/JPY: Multi-Timeframe Elliott Wave Setup – From 4H to Weekly
This is a beautiful multi-timeframe structure. Let me walk you through the setup layer by layer.
4-Hour Chart: Wave ((C)) of D – UsdJpy Ending Diagonal
The 4-hour shows the immediate action. We’re in the final wave of this corrective leg with an ending diagonal pattern (wave C of D). Notice the converging trendlines and overlapping waves – classic diagonal structure.
Key Points:
- Wave C of D looks nearly complete around current levels (154,452)
- The red dashed line is your confirmation trigger – a break below this line signals the ending diagonal is finished and we’re moving into pullback/wave E setup
- “Waiting for Break-Out” label shows we’re right at the edge
- Support zones marked: 0.618 (153.606), 0.382 (149.266), 0.5 (147.482)
What to watch: Break of the red dashed line = Wave C complete, pullback incoming.
Daily Chart: Full Wave D Structure
Zooming out to the daily, we see the complete wave D structure that contains the 4-hour action. This is the corrective triangle (wave D) within the larger wave 4.
Key Points:
- Wave A, B, C, D all visible in a triangle pattern
- We’re near D completion (which contains our 4-hour wave C)
- Wave E is the final leg of this correction coming next
- The triangle is converging toward E – which should be a smaller, final bounce
What this means: When the 4-hour breaks that red line, we get wave E on the daily. Wave E should be tight, contained, and smaller than the prior legs – classic triangle behavior.
Weekly Chart: Wave (4) – The Giant Triangle
Now pull back to the weekly, and you see the massive wave 4 correction that everything fits inside. This is the big picture context.
Structure:
- Wave A, B, C, D, E = the full wave 4 correction on the weekly
- We’re currently in D phase of this macro correction
- After D completes (after wave E on the daily), we get the powerful wave 5 impulse on the weekly
The Trade Setup:
- 4-hour: Wave C breaks red line → Pullback to 0.618 (153.606)
- Daily: Wave E unfolds → Smaller bounce in the E zone (151,000-143,000 range)
- Weekly: After E completes → Major impulse wave 5 begins with strong directional move
Why This Matters
This isn’t just a reversal. You’re watching a corrective structure complete at multiple timeframes simultaneously. When wave D finishes and wave E plays out, you’ll have:
- Confirmed structure (4-hour break + daily pattern completion)
- Clear pullback zones (Fibonacci levels marked)
- Setup for the strongest move (weekly wave 5 impulse incoming)
Trading Action: Wait for 4-hour red line break → Confirm pullback to daily support → Position for wave 5 breakout. This is where the money is.
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