Short Term Elliott Wave view in USDJPY suggests the decline from January 4, 2022 high is unfolding as a double three Elliott Wave structure. Down from January 4, wave A ended at 115 and rally in wave B ended at 115.68. Pair then resumed lower in wave C towards 113.45. This completed wave (W) in higher degree. Rally in wave (X) ended at 115.06 with internal subdivision as a zigzag. Up from wave (W), wave A ended at 114.65, wave B ended at 114.42, and wave C ended at 115.05. This completed wave (X) in higher degree.
Pair has resumed lower in wave (Y) an broken below wave (W) at 113.45. This suggests the next leg lower has started. The internal subdivision of wave (Y) is in progress as another zigzag in lesser degree. Down from wave (X), wave A ended at 113.44 as an impulse. Wave B corrective rally is in progress to correct cycle from January 18, 2022 high before the decline resumes. Near term, as far as pivot at 115.05 high stays intact, expect rally to fail in the sequence of 3, 7, or 11 swing for further downside. Potential target lower is 100% – 123.6% Fibonacci extension from January 4, 2022 high which comes at 110.4 – 112.1 area.
