USDJPY SELL NOW

In the USDJPY 1-hour chart, Elliott Wave Theory suggests a SELL opportunity is developing. The chart displays a completed impulsive sequence from points (1) to (5), followed by the start of a corrective phase.

The completion of wave (5) at a significant high implies that the market is now in the corrective stages, traditionally consisting of an A-B-C pattern. From the visual depiction, wave (a) has already made its move downwards, and it seems that wave (b) has peaked, likely setting the stage for wave (c) to extend lower.

The Fibonacci extension levels for wave (c) suggest potential targets at 0.618 (154.466) and 1.000 (152.290). These levels are significant as they typically represent areas where the corrective waves could exhaust their momentum.

Given this configuration, entering a SELL position near the end of wave (b) or the start of wave (c) is advisable. The initial target could be set at the 0.618 extension (154.466) with a potential extension to 152.290 if the downward momentum is strong. A stop-loss should be considered just above the peak of wave (b) to mitigate risks in case of a reversal back to the upside.

As always, monitoring the price action closely is crucial to ensure that the wave (c) develops as anticipated. Adjustments to the trading strategy may be necessary based on how the market responds at these key Fibonacci levels.

Trade closed: target reached