Elliott waves analysis – USD/JPY. Beginning of the third impulsive wave development.

The price ultimately failed to reach the previously designated target of 61.8% on the Fibonacci grid. Intensified selling pushed the price down, and this recent decline could mark the beginning of a prolonged downward impulsive movement.

This is because earlier, a large correction, likely in the form of a plane, had finished developing. Before the correction, the price decreased very confidently in an impulsive style. Thus, both models are supposedly part of an even larger downward impulsive move. In this case, the expected decline in the near future will have the status of a third wave, and third waves are often the longest and strongest. Therefore, it is recommended to consider the possibility of entering into sell trades.