The structure of the USDJPY currency indicates the formation of a global impulse trend, which consists of cycle waves.
On the 1H timeframe, we see the final part of the sideways correction IV, it is the primary triangle. After the completion of the triangular pattern, the price moved higher within the cycle wave V.
Wave V takes the form of a 5-wave impulse ①-②-③-④-⑤ of the primary degree.
Currently, we assume the construction of the primary fifth wave, which takes the form of an intermediate impulse. The price in the final primary wave ⑤ could rise to the level of 140.03.
At that price level, wave V will be at 200% of previous cycle impulse III.
An alternative scenario suggests that the entire cycle wave V has ended in the form of a primary impulse.
Thus, in the next coming trading weeks a new downward trend is likely.
It is assumed that a bearish impulse could form in the market in the near future, which will consist of primary sub-waves ①-②-③-④-⑤, as shown on the chart.
The currency could depreciate to a minimum of 121.27, which was marked by the correction ④, or even lower.
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