USD/JPY. The Impulsive Decline is Coming to an End. | 01 August 2024
01 August 2024, USD/JPY
The expectations of further price decline were fully met. The dollar significantly weakened against the yen, making wave 3 the shortest among the leading waves, which is unusual. For this reason, the current wave can be considered part of an extension in wave 3. In this case, the price has potential for further decline.
The possible trajectory of the movement is schematically indicated on the provided chart. Based on this, it can be assumed that a corrective pullback or consolidation phase will soon begin, followed by another less significant minimum update, leading to the completion of the extension in wave 3.
After this, another corrective phase will follow, forming wave 4.
Therefore, previously opened short positions can be gradually closed. It's not advisable to open long positions in anticipation of a corrective pullback yet, as buyers have not shown strength and the price may continue to decline.
Investment idea: flat.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
