Hi Traders, USDJPY decline from wave 5 high looks impulsive as there is no overlapping swing sequence. According to Elliott Wave theory, a three-wave correction in the opposite direction follow every impulse move before the price resume in the direction of the impulse.
This correction seems to unfold as a double zigzag pattern, labeled (w)-(x)-(y). This correction retracted 78.6% of wave A and also made a double top.
If this count is correct, the price is expected to move lower in wave C, and targets below wave A low are plausible in the weeks ahead.
What's your view on USDJPY? Let me know in the comment. Thanks for reading!