On March 6th we showed you this forecast of USDJPY. We were anticipating the end of the corrective wave (2) or B and a sell-off in wave (3) or C down. As you can see on the chart below, prices did decline by more than 250 pips from 103.75 to 101.18.
However, it turned out that we were still in the middle of a double zig-zag W-X-Y correction. This development, carries the same message as before. The only difference is in the better entry level, which we now have for short positions in USDJPY. With the invalidation level at 105.00 and a minimum target of 100.00, we have at least 3,5:1 risk/reward ratio. We expect that upper channel line to act as a strong resistance level for wave Y of (2)/B around 104.00.
