USDJPY Shooting Star + Elliott Wave Spells Trouble

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USDJPY bounced higher from a horizontal support shelf created from August - September 2024.

The bounce is a second wave. The bearish shooting star candle on the daily chart spells reversal for USDJPY. The bearish wave count using Elliott Wave Theory as our guide as suggests deep cuts may be on the horizon for USDJPY.

We are considering the next decline to be a third wave at multiple degrees of trend. Additionally, the trend lower would break the support shelf and eventually make it to 122 and possibly lower levels.

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