USDJPY accelerated nicely to the upside last week and finally took out the 100.60 swing high that represents a wave D) high in a triangle. Usually when this high is broken it means that triangle is complete and that market is moving impulsively. With that said, we think that prices are in a red wave 3) of (5) moving up towards new highs. USDJPY is now in bullish move as long as pair trades above 98.80.

USDJPY Elliott Wave Analysis Daily

On 4h Chart USDJPY is trading nicely higher for the last few days within a larger degree of wave 3 from 97.58. Wave 3 is impulsive wave, so we expect to see five waves up. At the moment, we can see that pair reversed slightly to the downside from 101.90 area that could be a top of a subwave (iii). As such, we suspect that pair is now making a corrective wave (iv) retracement back to 101.00 region from where we expect a continuation back to the highs.

USDJPY Elliott Wave Analysis 4h

Written by www.ew-forecast.com