The $USDJPY pair from the 3/10 highs at 115.50 is showing a 5 wave impulse lower that is beginning to look mature. As for the target area to end the wave ((v)) of A, I would like to reference the 3 different methods we use to get a 5th wave target which can be seen here.
The 1st way we obtain a 5th wave target is where wave ((v)) equals wave ((i)) , which was at 112.51. The 2nd way we obtain a 5th wave target, the inverted extension of the depth of wave ((iv)) gave a 1.236 -1.618 extension area at 112.71-112.45 which already has also been seen, thus we say the impulse cycle lower from 115.50 is mature, however while a bounce remains below the ((iv)) highs at 113.56 the pair can see a little more weakness toward 111.94 which is the .618 extension of the wave ((i)) and ((iii)) combined and is the 3rd way we obtain a 5th wave target area. Ideally the pair will also show RSI divergence in the hourly to smaller time frames when comparing the lows in the wave ((v)) to the wave ((iii)).
Once the pair ends this impulsive cycle lower from the 115.50 highs from 3/10, which in the larger view is considered a 5th swing low from the 12/15 highs, expect a bounce develops to correct the cycle lower from the 3/10 highs. Afterward of that bounce in a wave B which is considered the 6th swing expect the pair to continue with another swing lower to finish a larger degree corrective 7 swings sequence from the 12/15/2016 highs.
Kind regards and good luck trading.
Lewis Jones of the ElliottWave-Forecast.com TeamBack