USD/JPY at 126 Support with Wedge Formation

USDJPY came down at the end of 2022, breaking to even lower prices in the last few weeks after BoJ policy YCC adjustment back in December, with price breaking out of a wave 4 and falling through 135 level which put bears back in play, possibly for the final fifth wave of a bearish impulse that can be looking for completion now at 126 area. That’s a final stage of a bearish impulse from 152.00, so be aware of a turn-up into a correction, possibly still this month if we see prices coming out of a wedge formation. Ideally, the breakout will cause a three-wave recovery back to 135-138 resistance area from where we will look for a new resumption of a bearish trend.