USDJPY has been in a roller coaster in the last few weeks due to the Bank of Japan (BOJ) Intervention. In this article, we will look at the short term Elliott Wave path for the currency post the intervention. We are calling the structure of the rally from 12.28.2023 low as a 5 waves Elliott Wave impulse. Up from 12.28.2023 low, wave 1 ended at 150.88 and pullback in wave 2 ended at 146.485.
The pair then extended higher in wave 3 towards 160.21. The 45 minutes chart below shows the starting point of wave 3 high. Pullback in wave 4, which is supposedly when the BOJ intervened, took the form of a zigzag structure. Down from wave 3, wave ((a)) ended at 154.48 and wave ((b)) ended at 157.98. Wave ((c)) lower ended at 151.81 which completed wave 4 in higher degree. The pair has turned higher in wave 5. Up from wave 5, wave (i) ended at 154 and wave (ii) ended at 153.4. Near term, as far as pivot at 151.8 low stays intact, expect dips to find support in 3, 7, or 11 swing for further upside.
