US stocks fell sharply yesterday, but the FX market once again did not follow the moves. So it was probably quite boring for the currency traders. US bonds were higher once again but USDJPY interestingly did not move much. However we see room for much lower levels on US yields and stocks so we believe that sooner or later USDJPY will continue to the downside with accelerating price action.
On the hourly chart we have seen a reversal from the low above the upper channel line which suggests that five wave decline is done and that market is in three wave rally back to 38.2-61.8% retracement level. This would be ideal zone for shorts next week.
USDJPY 1h Elliott Wave Analysis
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