FX.co ★ USD/JPY

Hello traders, The recent bearish candle on the daily chart of the USD/JPY currency pair has finally confirmed the development of the 2nd corrective wave as part of a potential ending diagonal. Its quotes confidently broke through the lower trend line "2-4" of the previous local expanded channel. It appears that an elongated zigzag will be formed as the 2nd wave, with a possible target being a re-test of the lower positioned MA100 moving average line, from which a bounce in the pair's quotes is expected. In this case, the correction of the 2nd wave relative to the price range of the 1st wave of the potential diagonal will be between 38.2% and 50%, which is sufficient for such a stretched 1st wave. Therefore, the current uptrend of the pair, which started from the northern gap after the horizontal triangle, will remain in force for a long period until the internal structure of the ending diagonal is formed.