USDJPY has not yet come down to near the monthly demand zone where the monthly correction process can be completed.
If USDJPY is the first to hit the monthly demand zone, there will be a rebound.
The first case could turn into a monthly uptrend if this rebound is very strong or sustains an impulse pattern. A big upside could come as it completes the A-B-C correction of the daily bearish pattern and rebounds.
The second case is that if the first rebound is a correction pattern, then the daily downtrend continues. Then we will renew the floor again. Then, since it becomes a downward impulse, if there is a rebound, it will be a weekly correction, and a weekly downward wave may come out again. That is, it becomes the A-B-C correction (Zig-Zag pattern) process of the weekly bearish pattern.
If USDJPY is the first to hit the monthly demand zone, there will be a rebound.
The first case could turn into a monthly uptrend if this rebound is very strong or sustains an impulse pattern. A big upside could come as it completes the A-B-C correction of the daily bearish pattern and rebounds.
The second case is that if the first rebound is a correction pattern, then the daily downtrend continues. Then we will renew the floor again. Then, since it becomes a downward impulse, if there is a rebound, it will be a weekly correction, and a weekly downward wave may come out again. That is, it becomes the A-B-C correction (Zig-Zag pattern) process of the weekly bearish pattern.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.