Update on USD/JPY

Looking at the 4H chart, USD/JPY finished 5 waves up; however, it broke the previous wave 4, and we know that according to the Elliott Waves Principle, breaking the previous wave 4 and retesting it signals more downside movement. Also, looking at the Daily timeframe, we can see a daily candle that closed below the previous wave 4 level which confirms more our bearish view on USD/JPY.

Our first target will be the 50% Fibonacci Retracement level at (106.768). Breaking this level will push USD/JPY for more downside towards the 61.8% Fibonacci Retracement level at (105.698).