USDJPY might still be working to carve Wave (B) of the corrective drop that had begun since 111.65 highs on July 02, 2021. Probability remains for Wave (B) to unfold as a triangle, before dropping through 108.30 levels as Wave (C) of the correction.
USDJPY had terminated lower degree Wave 4 of (3) around 107.57 levels earlier. Ideally, corrective waves might drift closer to previous Wave 4 termination (107.57). Also note the fibonacci 0.618 extension seen around 108.27 levels.
The above wave structure might be indicative of another wave lower toward 108.30/40, and up to 107.57 levels respectively. This could be Wave (4) termination, before USDJPY bulls are back in control to push through 112.50/113.00 levels as Wave (5) unfolds.
USDJPY has been in a larger degree correction since 101.18 lows registered in March 2020. The rally between 101.18 and 111.75 was the first Wave (A), which was followed by Wave (B) drop towards 102.59, registered on January 06, 2021.
Since then, USDJPY bulls have been unfolding Wave (C) towards 112.50/113.50 levels. Within Wave (C), bulls might have already carved Waves (1), (2) and (3) and are working towards Wave (4) termination around 108.30 levels. Expect the rally to resume thereafter.
Prepared by
The Profinacademy.com Team
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