USD/JPY Implodes Over 700 Pips in Aggressive Bearish Resumption

The USD/JPY pair experienced a significant downward movement, plummeting over 700 pips in a powerful expansion. This decline was preceded by a corrective recovery structure, which unfolded as a clean (A)-(B)-(C) zigzag near the 161.00 handle.

According to the Elliott Wave analysis, the chart from August 18th showed USD/JPY completing a three-wave corrective bounce, labelled wave ((X)). This counter-trend recovery was followed by an aggressive bearish resumption once wave ((X)) concluded against the invalidation point of 164.056.

The subsequent price action confirmed the forecast with remarkable accuracy, as highlighted in the chart from September 15th. The decline initiated a powerful five-wave impulse sequence labelled wave (A), cutting through multiple support levels as sub-waves 1 through 5 extended downward. Wave 3 drove the core of the sell-off, followed by a brief wave 4 pause near 157.00, before wave 5 completed wave (A) around the 152.50 level.