Elliott waves analysis – USD/JPY. Waiting for the Resumption of the Downward Impulsive Movement.

After a very strong downward movement, there is an appropriate response from buyers, with the price actively rising. However, this movement is considered part of corrective wave 4, so a prolonged rebound is unlikely. Most likely, after a bit more growth, the movement will slow down, and the price will start to decline.

There is a good chance that the downward movement will again be as swift as before, without any corrective stops. This will form the final fifth wave in the developing downward impulse decline.

Since there are no signs of resuming the downward movement yet, it is recommended to stay out of the market and observe the development of the situation from the sidelines.