Quick Take: USDJPY - Pre-FOMC, We May See More Retracing

Obviously, much of what is to happen to this pair will depend on the FOMC coming next week. But there are a few days and several trading sessions to go before we get to that decision. So for now, what we see happening here is that we should continue to see more retracement back down after that nice advance where we banked over +900 pips on a +281 point move. After that advance, prices have been retracing back down. And we don't think it is done dropping yet.

In any case, for now we see the wave count as suggesting that we should see it drop further to complete a 3-wave wave 2. Wave a of 2 was completed. Wave b of 2 may have just ended. And if so, then we should see the wave c of 2 here shortly. Wave c's are the corrective equivalent of wave 3's. So there is a decent amount of pips available here.

There is also a POTENTIAL Gartley pattern that is now in play as well. Although I do think that should it drop to complete the Gartley, it should still drop lower. We'll update the progress this pair makes regularly in my Skype group and issue updates on it as needed as well issue alerts for significant developments there.