Elliott waves analysis – USD/JPY. Correctional Pullback May Begin.

The Japanese yen is taking the lead. The breakthrough of a minor support level has already led to a strong downward movement. However, the dollar has not yet responded clearly to this. The price continues to trade at the achieved local lows.

In the future, the price may decline slightly further, after which a correctional pullback is expected. This will form the fourth wave in the downward impulse. In this case, another opportunity for decline will remain, represented by the fifth wave.

In any case, previously opened short positions should be secured in some way: partially close them, move the stop loss as close to the current market value as possible, or completely exit the short positions.