USDJPY Impulse or Ending Diagonal?

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The USDJPY currency pair hints at a primary impulse wave Ⓐ of a bullish zigzag.

Wave Ⓐ consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5). Actionary waves (1) and (3) and corrective zigzag waves (2) and (4) have ended.

At the time of writing, prices are rising within the final intermediate wave (5).

Most likely, wave (5) will rise to the 107.13 area. At that level, it will be at 76.4% of impulse (3).

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Alternatively, the primary impulse wave Ⓐ is in fact an ending diagonal.

According to the Elliott rules, in the ending diagonal, the end of the fourth wave goes below the end of the first wave.

Therefore, a decline in wave 4 to the level of 105.25 is possible. At that level, minor wave 4 will be at 76.4% of wave 3.

Finally, the price could rise in wave 5 above the previous high of 106.42.

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