USDJPY shows incomplete lower low (bearish) sequence from March 26, 2020 high and pair has scope to see more downside. The decline from March 26 high is unfolding as a zigzag Elliott Wave structure. Down from March 26 high (111.71), wave (A) ended at 107.1 and wave (B) bounce ended at 109.38. Wave (C) is currently in progress with 5 waves impulse subdivision. In the 45 minutes chart below, we can see wave 3 of (C) ended at 106.33 and wave 4 of (C) bounce ended at 107.49
Internal of wave 4 of (C) unfolded as an expanded Flat. Up from 106.33, wave ((a)) ended at 106.87, wave ((b)) ended at 106.38, and wave ((c)) ended at 107.49. Pair has resumed lower within wave 5 of (C) and the internal subdivision is unfolding as another impulse in lesser degree. Down from 107.49, wave ((i)) ended at 105.96 and bounce in wave ((ii)) ended at 106.66. Near term, while bounce stays below 107.49, pair has scope to see further downside within wave 5. Potential target for wave 5 of (C) is 100% – 123.6% Fibonacci extension from March 26 high which comes at 103.68 – 104.77.