In our last analysis of USDJPY, “Calm before the storm”, we were expecting the pair to rise to the 102.20 area and start declining from there. Well, it reached a little higher to 102.35, close to the 61.8% Fibonacci level, but this did not change our bearish count and expectations, because this is the level, where second waves often end. As shown on the chart below, that is exactly what happened here as well, with USDJPY falling in five waves to 101.65.
Now we have to wait for a small upside correction in wave 2 (orange) and then prepare for more weakness.
