USD/JPY. Correctional decline in wave b. | 05 January 2024

05 January 2024, USD/JPY

The value of the dollar against the Japanese yen has risen sharply. This movement was expected and is likely part of the ongoing correctional structure. Presumably, the correction will take the form of a simple zigzag, and the recent rise is wave a. Therefore, in the near future, we may see a pullback during which the next zigzag wave will form.
In this situation, one can consider cautious selling at the current market values, setting a protective stop-loss order just above the current local maximum formed by wave a.
At the first opportunity, it is recommended to move the stop-loss to breakeven and continue monitoring the situation. The downside targets in wave b are relatively small, so it won't be necessary to stay in the trade for an extended period.
Investment idea: Sell at 144.80, Stop Loss at 145.10, Take Profit at 143.00.

Bob Stan
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