The USDJPY currency pair seems to be forming a bullish double zigzag of the primary degree. This consists of three main sub-waves Ⓦ-Ⓧ-Ⓨ.
The market has completed the primary actionary wave Ⓦ, which took the form of a triple zigzag. Then it began to move in a horizontal direction, forming an intervening wave Ⓧ.
We can assume that the wave Ⓧ takes the form of a double three (W)-(X)-(Y) of the intermediate degree.
Thus, in the near future, we could see a downward price move in the final wave (Y), in the direction of the support level of 107.56, located on the lower forming line.
An alternative scenario suggests that the primary intervening wave Ⓧ has already been completed. Indeed, it may have the form of a bearish double zigzag.
Wave Ⓨ is most likely a double zigzag consisting of intermediate sub-waves (W)-(X)-(Y).
In the upcoming trading days, prices could move higher in the minor impulse C to the level of 112.236, where they will complete the primary wave Ⓨ. At that level, wave Ⓨ will be at the 61.8% Fibonacci extension of wave Ⓦ.
Then, after the end of the entire uptrend, a new downtrend could develop.
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