USDJPY had staged an impressive rally towards 110.40 levels on Friday, after having dropped through 108.75 lows earlier last week. It is quite possible that it has completed the proposed corrective drop towards 108.75, and is ready to resume its rally.
USDJPY bulls remain poised to push through 112.50 levels at least, to complete the corrective rally that had begun since 101.18 lows in March 2020. The first wave within its corrective rally had terminated through 111.75 levels.
Also note that Wave (B) correction was complete around 102.59 levels on January 06, 2021. Since then, Wave (C) has been unfolding with potential target seen towards 112.50 and up to 113.50, going forward.
The proposed wave counts for Wave (C) rally suggests that Wave (4) just terminated around 108.75 mark. If the above is correct, Wave (5) could be underway already and might reach 112.50 levels to terminate the corrective wave (A)-(B)-(C).
Ideally, USDJPY bulls would remain poised to hold above 108.75 levels going forward. Intraday dips might find support around 109.40/50 zone before the rally could resume towards 112.50 and 113.00 levels respectively.
Prepared by
The Profinacademy.com Team
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