USD/JPY – Is it Time for a Wave B?

I have written several times on the topic of the USD/JPY correction and I have said that I expect about 50% drop from the impulse move to the upside that lasted for three years.

The news that the British people have voted for the UK to leave the EU had a dramatic effect on the market and caused great movements in almost all currency pairs and indexes. USD/JPY, which is one of the most popular currency pairs, is no exception and after the results of the referendum came out it dropped sharply with over 800 pips. That, in turn, formed the expected wave A of the correction, which reached 50% Fibo.

I think that that pair might test the already reached low at 98.814 again, but I expect that this would be the beginning of wave B.

Not to mention that there are multiple media reports that almost a million people have signed a petition to organize another referendum. Such a petition will inevitably be discussed by the parliament and I think should there be a new referendum the market will obviously go in another direction, this currency pair included.