Hence, potential reversal could have higher odds. Obviously the potential short could be considered on retracement as initial leg down appears near complete.
Be sure to do your analysis.
What is the reason for you labeling it as corrective?
Is it the longer term price action?
Looking at the RSI, we got double RSI divergence, which is very common when the market has completed 5 waves up.
I agree that we should see weakness in the short term for 2 reasons:
Dollar rally looks mature
Yen strength looks likely.
But the weakness in USDJPY should prove corrective.
I see no reason why one would look at this rally as corrective at the moment.
Your assumed direction was correct. Kindly, Hamed