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USDJPY Bullish Impulse Could Peak At 121.00

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USDJPY

The USDJPY currency pair shows a cycle of sub-waves w-x-y.

Currently, we see the final actionary wave y, taking the form of a primary simple [A]-[B]-[C] zigzag. The correction wave [B] ended in the form of a contracting horizontal triangle, with intermediate sub-waves (A)-(B)-(C)-(D)-(E).

After the end of the correction pattern, prices rose in the final impulse wave [C]. This consisted of intermediate sub-waves (1)-(2)-(3)-(4)-(5). In the near future, the price could continue to grow in sub-waves (3)-(4)-(5), as shown on the chart.

It is possible that the pair’s growth will end near 121.00. At that level, primary impulses [A] and [C] will be equal.

USDJPY

Alternatively, the primary impulse wave [C] could complete its pattern much earlier, near the price level of 119.49.

At that level, it will be at the 76.4% Fibonacci extension of impulse wave [A]. In zigzags, waves with such proportions are very common.

If this scenario happens, then the market, having reached the level of 111.49, will turn around and start moving in a downward direction. That said, the development of a new bearish trend will begin.

The first target the bears will aim is the minimum of 114.59, marked by a triangular correction [B].

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