USDJPY seems to be forming a bullish Ⓐ-Ⓑ-Ⓒ zigzag. Wave Ⓐ formed a 5-wave impulse and wave Ⓑ a simple (A)-(B)-(C) zigzag. Wave Ⓒ has only just started moving up.
Currently, the pair is moving in the intermediate wave (1) of Ⓒ. It consists of minor sub-waves 1-2-3-4-5, with the first three parts of the minor move already complete.
In the short term, we could see the completion of wave 4 too. That could be near 106.76. At this level, wave 4 will be at 61.8% of wave 3.
The final 5th wave could reach the 108.34 level. This target would respect the tenancy of impulse waves 5 and 3 being equal.
It is worth considering an alternative scenario too.
Here, the primary wave Ⓑ is not yet complete. It could end up forming a triple (W)-(X)-(Y)-(X)-(Z) zigzag.
In such a case, the current decline in wave (Z) is a simple zigzag and is expected to end soon.
If this hypothesis is correct, we could see the completion of the waves near 105.97. This is the previous low formed by wave (Y).