“On the 15-minute chart of USDJPY there is a perfect impulse to the south, which means that the corresponding three-wave retracement should be in progress right now. If this is the correct count, we will be expecting a little more strength from USDJPY, before the downtrend resumes in wave (3)/C.” That is all we said for the following chart on July 17th, in an article called “USDJPY intraday impulsive weakness”.
When this forecast was published, the pair was trading around 101.50. Nine hours later USDJPY bottomed at 101.08. Not bad at all for a prediction, based on a 15-minute chart.
This situation is another great example of the Elliott Wave Principle being accurate even on the smallest time frame charts, such as 15-minute.
Now, the above-shown decline from 101.78 to 101.08 looks impulsive, which means, that the rally, which is currently in progress, should be a correction. Once it is finished, another move to the south can be expected.