On the daily chart of USDJPY we are observing a nice impulsive higher degree reversal taking place labeled as a three wave A-B-C rise within black corrective wave B. If that is the case, the recent sharp upward reaction is the final push within the final blue wave C which may find an ideal resistance and reversal zone near the 61.8 or even 78.6 Fibonacci ratio, from where bears may again take over.
USDJPY, Daily
Regarding the lower period, we see USDJPY trading nicely higher, now at the 117.4 mark, after a triangle correction had unfolded at the 113.10 level in the previous wave 4. As such, we see more gains in play, ideally, towards the 161.8 Fibonacci ratio, where some resistance may be seen for wave 5 and a minimum three wave reversal lower may follow. A break beneath the 113.11 level would be a confirmation for a top in place and more weakness to follow.
USDJPY, 4H
