USDJPY: Strong Elliott Wave Bearish Reversal On Hawkish BoJ

USDJPY is coming sharply to the downside this week as hawkish BoJ hinted a potential policy change in 2024. We see strong breakdown on USDJPY, below the chanel support line on the daily chart which makes us think that this is a new higher degree decline that should be done with three waves down minimum. So be aware of more weakness in weeks ahead, especially after we see any bounce back in wave 2 or B rally.

One of the reasons why USDJPY can be headed much lower is also the US nod market which can be bottoming, as speculators believe that the FED is done. So with speculators betting on hawkish BOJ and "dovish" FED for 2024, the pair can be headed to 137.

Grega

Comment:

TYPO: **US nod** should be US bond