Elliott waves analysis – USD/JPY. The development of the initial diagonal triangle is coming to an end.

The situation with the considered pair continues to develop within the framework of the previously proposed wave scenario. It’s worth noting that there is currently an assumption of the initiation of a descending impulsive or corrective movement.

The downward movement is likely to start from an initial diagonal triangle, where the „work“ on Wave 4 is completed, taking the form of a converging horizontal triangle. After such patterns, the fifth wave tends to be insignificant, so only a slight update of the local minimum is expected, followed by an anticipated rise to correct this diagonal.

Therefore, there is a potential situation for entering long positions.