USDJPY - SELL IDEA

In this USDJPY 30-minute chart analysis, I'm leaning towards a SHORT position based on the Elliott Wave Theory. Observing the price movements, it appears we've completed an impulsive five-wave sequence, with the final (5) wave exhibiting a dramatic peak. Following Elliott Wave principles, after a five-wave uptrend, a correction typically ensues, which consists of three waves labeled (a), (b), and (c).

I'm anticipating a retracement that could potentially test key Fibonacci levels. The initial wave (a) seems to have concluded, and we are currently in a corrective wave (b) that might retrace up to the 0.5 or 0.618 Fib levels, aligning with price points of 157.361 and 158.033, respectively. Once wave (b) concludes, I expect a decline towards the start of wave (a), with a target at the 0.618 Fib retracement level of 153.264 for wave (c).

Traders should watch for confirmatory signs of wave (b) completion before entering a SHORT position to capitalize on the anticipated downtrend of wave (c). As always, I recommend using appropriate risk management strategies to navigate the inherent uncertainties of the market.

Trade active

Trade closed manually