The price action of the USDJPY established a minor dropdown following the release of the January retail sales data in the U.S. yesterday.
The correction itself appears to be serving as the second retracement leg (3-4) of a broader Elliott pattern. Given that it has just reached the lower limit of the channel and the major support level at 115.00 (underpinned by the 200-day MA in orange), a bullish rebound from the current spot price seems highly probable.
The correction itself appears to be serving as the second retracement leg (3-4) of a broader Elliott pattern. Given that it has just reached the lower limit of the channel and the major support level at 115.00 (underpinned by the 200-day MA in orange), a bullish rebound from the current spot price seems highly probable.
