USDJPY - SELL IDEA

The USDJPY pair's recent price action is capturing the attention of Elliott Wave enthusiasts. It appears that the pair has completed a corrective wave (b) and is now poised to begin an impulsive wave (c) to the downside. The potential for this bearish wave is highlighted by the retracement to the 0.850 Fibonacci level of the prior wave (a).

In line with Elliott Wave principles, we anticipate wave (c) to extend to at least the length of wave (a), with the 1.0 and 1.618 Fibonacci extension levels serving as potential targets. This setup offers a SHORT position with precise parameters: entries could be planned on confirmation of the downward move, and stops could be placed above the recent highs of wave (b) for risk control.

Given the JPY's status as a safe-haven asset, any increase in market uncertainty may further drive this expected move. Traders should remain attuned to the evolving market sentiment and be ready to act on shifts that could affect this currency pair.

As always, maintaining a disciplined approach to risk management and being prepared to adapt to new information is essential for successful trading