Blue lines- Fibonacci extension
Red lines- upward waves
USDJPY four weeks ago made a new all time high at 151.96. Since then price has lost more than 1000 pips while it currently is trading just below 140. The entire rise from 99 to 151.96 is a little bit bigger than the 100% extension of the first rise from 79.50 to 125.85. The entire upward move could be complete. The two upward waves have almost the same size. Price reversed right at the area where the two waves are almost identical. The steep slope of the second upward move, justifies the sharp decline. The RSI has provided a clear bearish divergence. The chances that a major top is in are high. Traders need to be very cautious.
