Wave dimension analysis:
Yesterday’s another attempt to test the 78.30 level was unsuccessful again for the USD/JPY pair. As a result the pair fell by 65 points. Thus given the correction variant of development of the upside local trend section initiated November 18 we might suppose that the pair finished forming another abc waves series and at the moment is trying to resume downside movement to October all-time high 75.50. At the same time we cannot eliminate the possibility that in case of further price growth it will form a 5-wave structure considered as the beginning of the future continuous uptrend.
General conclusion and trading recommendations:
Despite the exit of the price out of the downside channel, the three-wave upside correction structure has probably been finished near the 78.25 level. It was proven by yesterday’s decline of the price that formed another three-wave combination. During this potential movement the price might decline to 76.00. In the nearest time the price can return to the downside channel.
