UPDATE: How to determine a SELL for USDJPY

Hi guys, this has burst higher on the European open, not my expectation. However, if you factor in equities should see a headwind at around $2,785 on the S&P 500 we should begin to see JPY act in a risk on environment. Understand that a Wave 2 can retrace the entire length of wave 1 but it has to unfold in 3 waves. currently, we are in 3 waves so we need to focus on looking for a 5 wave pattern lower followed by a 3 wave counter trend rally. It's the counter-trend rally that we should with a high probability we move lower once more! An issue I have with this chart is RSI is way above 70 which is a typical characteristic of wave 3!

Hope this helps guys have a great day!