USDJPY has rallied past 112.50 level to terminate its larger degree Wave ((C)) of the proposed corrective phase, which had begun from 101.18 low since March 2020. The currency has print fresh highs around 112.72 today before pulling back.
USDJPY was expected to push above 111.75 mark to complete the above corrective structure before turning lower again. A drop below 112.10 would confirm a top is in place and that bears are going to remain in control over the next few weeks.
At a larger degree, USDJPY was carving ((A))-((B))-((C)) rally since 101.18 mark. Wave ((A)) and ((B)) had terminated around 111.75 and 102.59 levels respectively. Since then, Wave ((C)) was unfolding, which looks complete at 112.72 levels.
If the above proposed structure is correct, USDJPY will reverse from here and drag towards 109.15 levels, the triangle termination. Please note that the rally between 109.15 and 112.72 was an impulse wave, completing the corrective structure.
Having said that, potential remains for a push through 113.00 mark as well, before bears are back in control. Either way, upside potential remains less going forward as bears might be preparing to drag prices lower towards 105.00-106.00 zone in the next several weeks.
The Profinacademy.com Team
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