During the past trading day, the formation of a downward impulse wave likely concluded for the USDJPY pair. This could be the beginning of a major and prolonged bearish movement. In the near term, we expect a corrective pullback, which may take the form of a simple zigzag.

This presents a very good opportunity to enter sell trades with significant potential. You can open sell trades in this situation when the price reaches the high of wave 4 of the previously formed downward impulse, or wait for the break of the low set by wave 5. In the first case, the potential profit from the trade can be much higher.

Recommendations: Sell at 158.50, SL at 158.80, TP at 151.75.