Elliott waves analysis – USD/JPY. The dollar is preparing to attack the yen.

In the previous overview, two possible scenarios were considered. The primary scenario assumes a decline in price in the current third impulse wave. However, as soon as the price updated its minimum, buyers immediately stepped in, causing a sharp slowdown in the downward movement.

Such behavior raises caution, so it’s worth keeping an alternative scenario in mind. In the near future, the price may start to rise and form a correction, which will serve as wave (ii) in the emerging downward impulse. The upward movement could be quite interesting, so it’s worth considering buying and setting a protective stop loss at the minimum.