Hi traders! Hope y'all having a great weekend.
Let's quickly take a look at the USDJPY 2 hourly chart. The decline from wave (y) high is very sharp and impulsive and breaks the previous bullish structure.
According to Elliott Wave theory, a three-wave correction follows every impulse before the market resume in the direction of the impulse.
The rally from wave (i) low can be seen as the correction and it has already retraced about 61.8% of the impulse leg.
If this count is correct, once the correction is completed we should see another sell-off in wave (iii). Any further rally must stay below the invalidation level for this setup to remain intact.
What's your view on USDJPY? Let me know in the comment.
Thanks for reading!
Let's quickly take a look at the USDJPY 2 hourly chart. The decline from wave (y) high is very sharp and impulsive and breaks the previous bullish structure.
According to Elliott Wave theory, a three-wave correction follows every impulse before the market resume in the direction of the impulse.
The rally from wave (i) low can be seen as the correction and it has already retraced about 61.8% of the impulse leg.
If this count is correct, once the correction is completed we should see another sell-off in wave (iii). Any further rally must stay below the invalidation level for this setup to remain intact.
What's your view on USDJPY? Let me know in the comment.
Thanks for reading!