By Orbex

The current formation of the USDJPY currency pair suggests the construction of the cycle degree wave e. Most likely, wave e will have the form of a primary double Ⓦ-Ⓧ-Ⓨ zigzag.

The formation of the primary intervening wave Ⓧ in the form of a double three has ended.

In the medium term, we could expect the construction of an intermediate (A)-(B)-(C) zigzag, which forms the final primary wave Ⓨ.

The end of the intermediate impulse wave (A) is likely near 112.04. This is on the resistance line through the vertices Ⓦ and (X).

Let’s consider an alternative scenario in which the construction of the primary intervening wave Ⓧ has not yet been completed.

If we pay attention to the last sub-wave (Y) of the intermediate degree, we can see that minor impulse wave A and correction wave B have ended.

A decline in the price in the minor impulse wave C to the level of 108.93 is likely. This is on the support line through the vertices (W) and ⓑ.

By Orbex