The market forms a small upward correction wave (B), which is part of the descending zigzag (A) - (B) - (C). The probability that soon the development of correction (B) will be fully completed and we see a downward price movement within the framework downward impulse (C). It should be noted that the main event of the day for today will be the publication of data on inflation in the US for February. Leading indicators indicate the growth of consumer prices within the median of forecasts, this may provoke a strengthening of the dollar and the beginning of the formation of a downward impulse. Thus, soon the beginning of a downward trend is possible.
As expected, the market continues to advance in an upward direction, forming an ascending combination of zigzags. Most likely, in the near future the market will continue to rise. In favour of the upward scenario, the dynamics of credit markets, where the yield of 10-year UK government bonds grows in relation to their counterparts from the US and Germany, also speaks. However, it should be borne in mind that in the second half of the day important macroeconomic statistics will be published in the US, which may provoke a local strengthening of the dollar.
The currency pair continues to advance in an upward direction, forming the initial part of the new trend. Most likely, in the last section we see the construction of a bullish momentum 5, within which today we will see a price rise. In favour of growth speaks the dynamics of the stock markets, with which USDJPY has a strong correlation. Therefore, today the growth of a currency pair is possible.