USDJPY: Primary Correction Looks Completed

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There is a projected pattern on the USDJPY structure above that suggests further upside after the successful completion of primary wave ②. It assumes that January’s low at 107.65 ended with cycle wave b, which hints to 5-wave bullish move to complete wave higher up.

If the structure was identified correctly, primary wave ③ has just begun. We could then expect the potential 5-wave impulse move to reach to at least the previous high of 110.30.

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If the structure will not unroll as expected, this suggests that the primary wave ② hasn’t yet found a low.

The correction could then turn into a triple zigzag ⓦ-ⓧ-ⓨ-ⓧ-ⓩ and lead to a short-term weakness before further clues are exposed.

In this case, the bullish intervening wave ⓧ could end soon and then, followed by a final zigzag ⓩ, move lower towards the 108.24 level.

The target is the 78.6% Fibonacci retracement of waves ①.

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