Analysis of USD/JPY CorrectionI will highlight the lines and squares that I corrected in purple, specifically those I did not analyze in the previous analysis for USD/JPY on the weekly (W) chart.
1. I did not analyze where the High/Low is located.
2. I did not notice that a W break of structure occurred.
3. *When we look from the LOW area related to the IC to the next HIGH, the price increased at a much slower pace. When we compare that area with the price movement from the last HIGH to the area where the BOS was created, we see that the price moved significantly faster. We can easily see this by counting the candles from area to area.
4. The last bullish candlestick is just a pullback before another drop.
The break of structure is just one of the confirmations that a potential structure change has occurred. For the confirmation to be complete, we need all of the following:
1.BOS
2. LH
3. LL
4. LH
This applies to all types of timeframes.
What could happen now is some sort of pullback before the structure changes, and we will certainly monitor this on lower timeframes. This also aligns with the analysis for EUR and GBP, as if we expect EUR to rise, GBP will also rise, which means USD will fall.
