A little over a week ago, on August 13th, we spotted a five-wave impulse to the downside, followed by a three-wave recovery on the 15-minute chart of USDJPY. According to the Elliott Wave Principle, the pair was supposed to head south again. The next chart was published in “USDJPY Sends A Bearish Message”, where we warned you to “prepare for lower USDJPY rates”.
Of course, the corrective recovery could extend both in terms of price and time. That is why the theory provides a specific place for the protective stop, so we do not have to think about it all the time. Fortunately, USDJPY did not go much higher.
When the forecast was made, the pair was trading above 124.50. Today, it fell to 122.80. A great example of the Elliott Wave principle’s accuracy, even on the smallest degrees of trend. From now on, the bears seem to be in charge, so the decline is likely to continue.
