5 - Crash Sequence & Brexit Volatility vs Wave Patterns

Ever since late March 2018, USD/JPY has been rising consistently towards October 2018 highs, with shallow and short-lived pullbacks. The bullish trend has been labeled as Intermediate (A) (turquoise), with its Minor sub-waves 12345 (green) unfolding within an Ascending Channel, under a Leading Diagonal structure.

Since early October 2018, the USD/JPY has been trading within a corrective structure labeled as Intermediate (B) (turquoise).

Within Intermediate (B) (turquoise), the first decline has been labeled as Minor A (red), and the swings which are showing corrective features has been labeled as Minor B (red), labeled as a Descending Triangle.

Minor B (red) has been rejected form the strong resistance area and vibration zone located at the 61.8% Fibonacci Retracements of the yearly decline. That rejection resulted in a bearish impulse and a flash-crash of the USD/JPY, a sequence which has been labeled as Minor C (red).

USD/JPY could be continuing the down-trend, with one last wave needed in order to complete Minor C (red), but also the entire structure for Intermediate (B) (turquoise).

Should this scenario occur, and the USD/JPY would unfold a five-wave bearish sequence, then the next best interpretation for the larger degree cycles could point towards a bullish reversal over the medium-term.