USDJPY might be stuck within a trading range and need to clear above 110.80 to confirm further bullish structure. Bears might be looking poised to remain in control over the near term and drag prices lower towards 107.50 levels in the next few trading sessions.
USDJPY larger degree wave structure still remains constructive for a push towards 112.50 levels. It remains to be seen if prices manage to rally from here or after a more complex Wave 4 correction. The pair has been working on a larger degree (A)-(B)-(C) rally since 101.18 lows in March 2020.
Wave (A) and (B) had terminated around 111.75 and 102.59 levels respectively and Wave (C) has been progressing since then. Going further into the sub waves within Wave (C), USDJPY might have completed Waves (1), (2) and (3) around 104.40, 103.30 and 111.65 levels respectively.
Also note that Wave (3) was extended along with lower degree wave iii also an extension, which terminated above 111.50 levels in July 2021. If the above holds well, Wave (4) might be in progress since then.
Furthermore, Wave (4) might have terminated around 108.75 levels or could drop through 107.50 if a more complex wave structure is unfolding. The 110.80 level remains critical for now and prices should stay lower to keep bearish structure intact.
Prepared by
The Profinacademy.com Team
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