USD/JPY – Wave A of the Correction Is Possibly Over

It is not certain yet whether the trend has reversed because the pair hasn’t broken above the trendline yet, nor do we have new high or a higher low, but in my opinion it is normal for the first of the three corrective waves to fall to 50% Fibo, and in this case the pair has reached even lower – 91.81.

If I am correct we should witness a multi-month corrective move to the upside in the same direction as the impulse trend, which might reach 120.00 – 125.00. And although the supposed wave B that I have drawn on the chart is rather steep, I don’t actually expect it to be this way.

The B wave of a correction is the hardest to trade, and the traders who wish to do that should have nerves of steel, even if they’re following the signals on the daily time frame.