FX.co ★ USD/JPY

Hello traders, Considering the medium-term trend of the major currencies and the dollar index, I come to the conclusion that on the daily chart of the USD/JPY currency pair, a potential double zigzag "wxy" may be developing in the ascending direction as the 3rd wave of the larger contracting ending diagonal. Currently, there are reasons to believe that the first zigzag "w" has completed at the level of 159.76, partly due to the local overbought condition of the asset according to the RSI indicator. If this is the case, a correction of the pair is expected in the near future as the connecting wave "x", which can take any of the known corrective structures. Apparently, this wave will not be too deep in terms of its price range. Subsequently, a resumption of the pair's growth becomes relevant as the formation of the internal structure of the second zigzag "y".