The current USDJPY structure suggests that we are heading towards the end of a cycle-degree triangle consisting of waves a-b-c-d-e. The triangle is part of a supercycle-degree corrective wave (b).
At the time of writing, the last corrective upside move in wave e looks like an Ⓐ -Ⓑ -Ⓒ zigzag of the primary degree.
Waves Ⓐ and Ⓑ are fully completed, whereas wave Ⓒ is still under development.
With most of the intermediate-degree impulse waves completed, we can now expect wave (5) to end the triangle pattern near 112.74.
The target would respect the tenancy of primary impulse waves Ⓐ and Ⓒ being equal.Without a clear pattern pointing at a completed correction in wave (4), however, we can expect an alternative scenario to come into play.
If this hypothesis stands true over time, then wave (4) could take the form of a bearish zigzag in the minor A-B-C wave, the completion of which is possible near 108.93.
At that level, intermediate wave (4) will be at the 50% Fibonacci retracement of wave (3).