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USD/JPY made some important breakout in the past sessions, when falling below 76.50 lows and also below red support line, connected from October 2011.

In fact, decline is impulsive, so we think that wave E) already accomplished wave (X) triangle at 78.27 and that pair will now continue lower.

Currently, wave 1 is in progress, which may find the low around 76 area, and then send prices into a minor corrective wave 2 which will ideally test and then reverse from that red broken trend line.

USD JPY Elliott Wave Analysis February 2012

Guest post by Gregor Horvat

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