USDJPY Is Bearish, But More Weakness Can Be Expected After A Corrective Recovery
USD/JPY is finally topping out this year at our 162-164 resistance area, where we called the end of a big ending diagonal on the daily chart. Notice that the price is now falling sharply and impulsively through the lower trendline support and straight, all the way down to the starting point of the wedge pattern, which we see it as the ongoing first leg (A) of a minimum larger three-wave A-B-C reversal down.
What's even more important is that we can see an impulsive decline in progress, with pair now trading at new lows, so its first wave, ideally an ending diagonal that can be slowly coming to an end; ideally, this month we will see a bottom.
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For a detailed view, you may want to check below our latest video analysis about USDJPY and its connection with stocks:
On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
