FX.co ★ Wave analysis of USD/JPY currency pair for 22 July 2010

As we have already mentioned, the USD/JPY price has shaped a 5-wave structure, having possibly determined the market reversal against the yen. If it is true, then yesterday’s drop can be the forming 2nd wave (or b) of this future upward segment, which is probable to take the form of a correction. On the other hand, considering the intensity of the downward trend starting July 14, complication of the 5th wave can be allowed, which will shape a convergent wedge in this case.