USDJPY: Triangle Is Pointing Lower
USDJPY fell to a new low last week from where we may see a short-term weakness down to around 108-110 area where we expect to see a bounce as current leg from 114.40 represents wave 5), final subwave within wave IV pullback. Keep in mind that despite very big decline from 2015 high we still see this leg down as corrective retracement within big uptrend. That said, don’t be surprised by a bounce next month.
On the 4h chart, USDJPY is finally breaking lower, now trading beneath 112.22 level which is important evidence for a completed triangle in wave 4). As such, we can look much lower now into wave 5) that can be targeting 110.00 as first objective but there is room even for 108.50 based on triangle measurement projection.
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