After a few days of an extremely ranged price action, Usd/Jpy has exploded to the upside, which however does not seem to be the right direction in days ahead, especially after 80 pip reversal seen on day later.
Notice also that price action since mid-August is extremely slow and choppy, clear indication of a corrective, contra-trend price action. As such, our bias are still to the downside, but may not be seen immediately as we look for an incomplete triangle. Waves D) and E) now in view, while market trades between important 77.85 and 76.07 levels.
Guest post by Gregor Horvat
Trend is bearish while 77.85 holds! As things stands right now, we still suggest you to avoid this pair, and wait on a break through one of important levels that will determine direction of a trend.