We're sellers | 19 May 2023

USDJPY is currently in the midst of the major impulsive wave (V), indicating the completion of the impulsive (V) wave pattern. The next phase we anticipate is the formation of a corrective phase known as the ABC corrective pattern. From the beginning of the major/outer impulsive wave (I) at 133.74 to the end of the impulsive outer wave (V), the market has formed an ascending channel, which serves as a bearish reversal pattern. This confirms our expectation for a potential drop in this pair. We will be monitoring for the price to break below the lower trendline of this ascending channel, at which point we will consider entering sell trades.

Trade Recommendations:

We're sellers