Elliott waves analysis – USD/JPY. A Reversal Has Likely Already Occurred.

The situation for this pair suggests that the upward impulse might already be completed. Furthermore, during the previous trading day, the initial downward impulse almost entirely developed.

Therefore, it is necessary to look for opportunities to enter sell trades as the trend has likely changed. The updated and corrected wave count is shown on the current chart.

A potential confusing factor could be wave (4), which is formed as a double zigzag. The fact that wave y did not fall below wave w suggested strong buyers, implying that the price would continue to rise significantly.

However, the current decline clearly looks impulsive. Thus, after a brief corrective rebound, the price is likely to continue moving downward.

For now, it is recommended to observe this instrument without making any trading decisions.