Regarding the analyzed pair, let’s take a look at the daily chart. Here, we observe a strong impulsive rise with elongation in wave iii and a truncated wave v. By the way, on smaller timeframes, wave v was considered as a prolonged correction taking the form of a triple zigzag. Most likely, this was an error, and in subsequent analyses, this wave will be reassessed.
Currently, there is an attempt at a decline. The fact of truncation in the fifth wave indicates increased selling pressure. Therefore, the ongoing decline is unlikely to be a minor correction. Sales may intensify and lead to a significant price drop.
Thus, from a long-term perspective, the initiative seems to be shifting to the side of the Japanese currency. Whether it can handle this in the future remains to be seen.
Origin: FreshForex
