On the daily chart of USDJPY we are observing a nice decline of a higher degree taking place, with the price now trading in the final wave 5. Because of a nice drop from 107 area, we believe blue wave 4 is completed and more weakness may be seen in the weeks ahead.
USDJPY, Daily
On the lower time frame, we see that USDJPY lost nearly 150 pips in the last two days, so it appears that the recent recovery to 102.60 was a corrective pullback belonging to a bigger downtrend. That said, we are looking now at a bearish wave count as the current price move in 200 pip range looks like a triangle in wave 4 within the extended red wave 3), which may fall to 100.00 psychological level in the very near-term. Generally speaking, we would not be surprised to see the price headed down to 98.00 this month.
USDJPY, 4H
