We're sellers | 16 May 2023

USDJPY is currently in an impulsive phase. The market has already formed the major impulsive wave (V), and as indicated in the chart above, it has created an ascending channel from major impulsive wave (III) at 133.71 to major wave (IV) at 136.32. However, since this is a bearish reversal pattern, we will wait for the market to break below the lower trendline of this ascending channel before considering a sell trade. Currently, the market is undergoing a minor correction, which is a bullish pattern within this ascending channel. Therefore, I expect the market to rise, potentially reaching our major wave (IV) at 136.32, forming a potential double top, and subsequently dropping down to 132.96.

Trade Recommendations:

We're sellers