The current USDJPY structure indicates that an impulse primary wave Ⓐ is under formation. This wave consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).
The intermediate wave (5) of this impulse consists of minor sub-waves 1-2-3-4-5. Wave 4 is a double three and is either fully complete or almost completed.
In the short term, we will see the growth of the market in the minor impulse wave 5 near the 110.70 area. At that level, the entire wave 5 will be at 61.8% of bullish impulse 3.
An alternative scenario indicates that there is a possibility of a deeper corrective wave forming (4).
It follows that the correction (4) could still continue in the minor sub-waves X and Y.
In particular, in wave Y, we can see a decline in the area of the target level of 107.89. At that level, intermediate corrective wave (4) will be at 23.6% of the previous trend (3).
Taking into account the strength and power of the bullish trend, it is logical to expect the formation of a shallow correction (4), as shown on the chart.