Hi traders, the USD/JPY is building a larger bearish correction as expected. More downside is expected as long as price stays below the resistance trend line (red).
The USD/JPY seems to have completed a bearish swing due to the failure of price to confirm a new low within 5-6 candles. It could therefore make a bullish bounce to retest the resistance trend line (red), which is likely to be a bearish bounce spot. The bearish correction is part of a WXY (pink) of a wave 2 (purple).
The USD/JPY is probably building a bullish ABC (green) correction within the wave B (blue) of a larger bearish ABC (blue) zigzag pattern. The main resistance zone is the Fibonacci retracement levels of wave B vs A and the main targets are the Fibonacci of Wave Y vs W. The current retracement within wave B (green) seems to be a falling wedge reversal chart pattern.
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Chris Svorcik Elite CurrenSea