USDJPY has raised through 110.80 resistance over the past week. The structure still looks corrective, potential standard flat since 108.75, and bears might be back in control soon. Please note that 111.65 remains interim resistance for now.
USDJPY remains structurally bullish towards 112.50 and 113.50 levels, to complete a corrective rally (A)-(B)-(C) at one larger degree. The corrective rally has been unfolding since March 2020, after printing lows around 101.18.
Wave (A) had terminated around 111.75 while (B) was a complex correction towards 102.59 respectively. Since then, Wave (C) has been unfolding as a potential impulse, and looking to terminate above 112.50 levels going forward.
Looking at the sub-waves within Wave (C), USDJPY seems to have terminated Waves (1), (2), (3) and potential (4) around 104.40, 103.30, and 111.65 and 108.75 levels respectively. If the above is correct, bulls are poised to target above 112.50 I the near term.
Alternatively, USDJPY is still carving a complex Wave (4), which could drop to 107.50 mark before terminating. If correct, we might witness a sharp decline from current levels as bears come back in control. Traders might want to position on the short side against 111.65 mark.
The Profinacademy.com Team
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