USDJPY is preparing to turn lower towards 107.50-108.00 zone until prices remain below 110.80 resistance. The currency pair might terminate its larger degree Wave (4) below 108.75 mark, before resuming its rally toward 112.50, going forward.
USDJPY has been consolidating between 109.50 and 110.50 sine last several trading sessions, managing to carve a 3-3 structure until now. If correct, bears would now be prepared to drag prices lower toward 108.85 at least, unfolding into 5 waves.
It would complete a 3-3-5 structure and also a combination since 111.65 high registered on July 01. If the above structure unfolds accordingly, larger degree Wave (4) would terminate below 108.75 before Wave (5) rally could resume toward 112.50.
USDJPY has been unfolding a corrective rally (A)-(B)-(C) since 101.18 low in March 2020. Wave (A) reached up to 111.75 mark, followed by Wave (B) correction lower towards 102.59 level respectively. Since then, Wave (C) has been unfolding towards 112.50 to complete the structure.
Within Wave (C), which is either sub-diving into 5 waves or a W-X-Y structure, USDJPY seems to have carved potential Wave (1), (2) and (3) around 104.40, 103.30 and 111.65 mark respectively. Larger degree Wave (4) might terminate towards 107.50, before bulls resume higher towards 112.50.
The Profinacademy.com Team
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