USD/JPY Short potential

The USD/JPY tends to follow SPX pretty closely. Since I think the stock market is fairly bearish, I took a look at the USD/JPY and saw that it too doesn't seem particularly strong.

The daily chart shows a leading diagonal (formed with the proper 5-3-5-3-5 pattern) followed by a shallow Wave2 correction. My guess is that Wave3 is now under way, of which Wave-i is complete and Wave-ii is nearly done. You can see that the 78.6% fibo is holding as resistance.

The 8-hour chart shows that the upward correction has been rather weak, forming in 3-wave ABC pattern (each of which subdivides into 3-waves). There is clear MACD and RSI divergence. If the SPX turns over strongly, it will take the USD/JPY with it, so I may consider shorting the USD/JPY on a break of the lower ascending trendline.

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