Short Term Elliott Wave View in USDJPY suggests the rally to 116.34 ended wave (1) on February 10, 2022. Pair has since turned lower in wave (2) with internal subdivision as a zigzag Elliott Wave structure. Down from wave (1), wave ((i)) ended at 114.98 and rally in wave ((ii)) ended at 115.87. Pair then resumes lower again in wave ((iii)) towards 114.47, wave ((iv)) rally ended at 115.24, and wave ((v)) lower ended at 114.38. This completed wave A in higher degree.
Wave B rally completed at 115.67 with internal subdivision as a zigzag. Up from wave A, wave ((a)) ended at 115.7, pullback in wave ((b)) ended at 115.07, and wave ((c)) of higher ended at 115.67. This completed wave B in higher degree. Down from wave B, wave ((i)) ended at 114.67. Expect pair now to rally in wave ((ii)) to correct cycle from February 28 high before it resumes lower. Near term, as far as pivot at 116.34 high stays intact, expect rally to fail in the sequence of 3, 7, or 11 swing for further downside. Potential target lower is 100% – 161.8% Fibonacci extension of wave A which comes at 112.8 – 114.
